Stephen S. Crawford, Chief Administrative Officer

Transcription

1 Stephen S. Crawford, Chief Administrative Officer April 20, 2004

2 Consolidated Financial Highlights ($MM) Quarter Ended 1Q04 1Q03 Variance Full Year Variance Net Revenues Compensation Expense Non-compensation Expense (1) $6,241 2,712 1,613 $5,474 2,549 1,499 14% 6% 8% $20,857 8,545 6,545 $19,120 7,940 6,460 9% 8% 1% Profit Before Tax (2) 1,916 1,426 34% 5,767 4,720 22% Net Income $1,226 $905 35% $3,787 $2,988 27% Diluted EPS ROE $ % $ % 35% $ % $ % 28% Sources: Morgan Stanley 10-K, 1Q04 Earnings Release Notes: (1) 2002 includes $235 million restructuring charge (2) Income Before Losses from Unconsolidated Investees, Taxes and Dividends on Preferred Securities Subject to Mandatory Redemption 2

3 Morgan Stanley League Table Rankings Calendar Year 2002 Calendar Year 2003 Calendar 1Q04 Mergers & Acquisitions Announced M&A Equity WW Equities WW IPOs Fixed Income WW Total Debt WW High Yield Source: Thomson Financial 3

4 Institutional Securities Financial Performance Net Revenues ($MM) Non-Interest Expenses ($MM) 9,111 11,211 6,474 7,603 3,135 3,504 2,193 2,318 Profit Before Tax ($MM) 1 2,637 3, ,186 Sources: Morgan Stanley 10-K, 1Q04 Earnings Release Note: (1) Income Before Losses from Unconsolidated Investees, Taxes and Dividends on Preferred Securities Subject to Mandatory Redemption 4

5 Individual Investor Group Financial Performance Net Revenues ($MM) Non-Interest Expenses ($MM) 4,069 4,017 3,960 3, , ,045 Profit Before Tax ($MM) Sources: Morgan Stanley 10-K, 1Q04 Earnings Release 5

6 Investment Management Financial Performance Net Revenues ($MM) Non-Interest Expenses ($MM) 2,721 2,509 2,054 2, Profit Before Tax ($MM) Sources: Morgan Stanley 10-K, 1Q04 Earnings Release 6

7 Credit Services Financial Performance Net Revenues ($MM) Non-Interest Expenses ($MM) 3,557 3,427 2,379 2, Profit Before Tax ($MM) 1,178 1, Sources: Morgan Stanley 10-K, 1Q04 Earnings Release 7

8 Morgan Stanley Stock Performance Morgan Stanley Stock Performance $55.28 $ $ /29/02 2/28/03 5/30/03 8/29/03 11/28/03 4/19/04 Source: Bloomberg 8

9 Morgan Stanley Relative Stock Performance Relative Stock Performance (Indexed) Through April 19, 2004 Morgan Stanley: 165% S&P: 34% S&P Div Fin Index: 147% /2/97 8/10/98 10/18/99 12/22/00 3/12/02 5/20/03 4/19/04 Morgan Stanley S&P 500 S&P Div. Financials Source: Bloomberg 9

10 Return on Equity 2003 ROE Avg. ROE Morgan Stanley MER LEH GS (1) 16.5% 16.1% 18.2% 15.0% 22.8% 15.3% 18.0% 19.5% Source: Company filings Note: (1) GS Avg only. For 1999, ROE is estimated based on company filings 10

11 Growth in Morgan Stanley Book Value Book Value per Share $11.94 $14.85 $16.91 CAGR: 14% $18.64 $20.24 $22.93 $ Q04 Source: Morgan Stanley SEC filings 11

12 Firmwide 2004 Initiatives Client focus Cost discipline Capital strength 12

13 Stephen S. Crawford, Chief Administrative Officer April 20, 2004