Business Services Industry
Morgan Stanley Dean Witter Announces Third Quarter Net Income of $1.2 Billion; Earnings Per Share Up 31%
Business Wire, Sept 21, 2000
Business Editors
NEW YORK--(BUSINESS WIRE)--Sept. 21, 2000--Morgan Stanley Dean
Witter & Co. (NYSE: MWD) today reported net income of $1,246 million
for the quarter ended August 31, 2000 -- a 28 percent increase from
$970 million in last year's third quarter.
Diluted earnings per share were $1.09 -- up 31 percent from $0.83
a year ago and the seventh consecutive quarter of 30 percent
year-over-year increases.
Third quarter net revenues (total revenues less interest expense
and the provision for loan losses) increased to $6.3 billion -- 18
percent higher than last year. The annualized return on average common
equity for the quarter was 27.6 percent.
Philip J. Purcell, Chairman, and John J. Mack, President, said in
a joint statement, "We continued to produce outstanding results, with
nine-month earnings 35 percent ahead of last year's record pace. Our
third-quarter results reflect significant breadth -- with record
operating results in Discover Card and asset management, and another
outstanding quarter in the securities business."
In the first nine months of fiscal 2000, net income was $4,248
million, 35 percent higher than $3,158 million a year ago. Nine-month
diluted earnings per share were $3.70, up 38 percent from last year's
$2.68 and net revenues rose 27 percent to $20.8 billion over the same
period. The annualized return on average common equity was 32.2
percent for the first nine months of the year.
SECURITIES
The Company's Securities business posted net income of $825
million, a 28 percent increase over last year's third quarter. The
increase was driven by record third quarter revenues in both the
Company's institutional securities business and its private client
group.
-- Institutional securities third quarter results reflected strong
performances in equity trading and investment banking, and an increase
in fixed income revenues. Institutional securities also benefited from
its strong global franchise, particularly in the European and Asian
markets.
-- Equity's third quarter performance benefited from higher
volumes and higher volatility in most major markets worldwide compared
to a year earlier. Fixed income's results increased over last year's
third quarter, as higher revenues from both derivatives and government
bond trading more than offset declines in commodities and global high
yield securities.
-- Investment banking's results were driven by continued high
levels of volume in global M&A advisory activity and substantially
higher revenues in equity underwriting. For the first eight months of
calendar 2000, MSDW ranked first worldwide in announced global M&A;
second worldwide in equity and equity-related underwritings; and third
in worldwide investment grade debt underwriting.(1)
-- The private client group (PCG) achieved strong quarterly
revenues, largely due to increased commissions and higher revenues
from fee-based products. PCG's sales of asset management products rose
substantially over the third quarter of 1999.
-- PCG's client assets in fee based accounts increased 68 percent
from last year's third quarter to total $155 billion. Total client
assets of $778 billion were $242 billion, or 45 percent, higher than a
year ago.
-- The number of PCG's global financial advisors rose to a record
13,789 -- an increase of 276 for the quarter and 1,480 over the last
twelve months.
ASSET MANAGEMENT
Asset Management's net income of $199 million, driven by record
operating results, increased 62 percent from a year ago. The Company
benefited from continued growth in assets under management and a shift
in asset mix to a greater percentage of equity products.
-- The Company's assets under management increased $90 billion, or
20 percent, over last year to a record $548 billion.
-- Retail assets increased $34 billion during the quarter and $76
billion from a year ago -- to stand at $354 billion. Higher market
values and positive net sales drove the quarterly and year-to-year
increases in retail assets. Institutional assets were up $4 billion
for the quarter and $14 billion from a year ago -- to stand at $194
billion.
-- The offering during the quarter of the Van Kampen Select Growth
Fund was the Company's second largest equity fund offering ever --
raising approximately $850 million in initial assets.
-- Reflecting continued improvement in fund performance, the
number of the Company's funds rated four or five stars by
Morningstar(2) rose to 55 from 48 in last year's third quarter. The
Company has the second highest number of domestic funds receiving
Morningstar's two highest ratings.
CREDIT SERVICES
Credit Services net income increased 10 percent over last year's
third quarter to a record $222 million -- reflecting record consumer
loan balances, strong transaction volume and continued improvement in
credit quality.
-- Managed consumer loans rose to $44.8 billion, an increase of
$10.4 billion, or 30 percent, from a year ago.
-- Merchant and cardmember fees rose 17 percent from a year ago to
$634 million. Transaction volume increased 20 percent to $21.9
billion, driven by increased sales volume and higher balance
transfers.
-- The consumer loan net charge-off rate declined to 4.18 percent,
111 basis points below last year's third quarter 5.29 percent, and its
lowest level in five years. The over-30-day delinquency rate was 5.47
percent compared to 6.34 percent a year ago.
-- Marketing and business development expenses increased 16
percent driven by continued investment in growth initiatives and an
increase in cardmember rewards reflecting higher sales volume.
-- Discover opened 1.3 million new cardmember accounts during the
quarter, and now has a record 41.4 million accounts. More than 10
percent of the new accounts were opened via the Internet.
The Company has repurchased approximately 33 million shares of its
common stock since the end of fiscal 1999. The Company also announced
that its Board of Directors declared a $0.20 quarterly dividend per
common share. The dividend is payable on October 27, 2000 to common
shareholders of record on October 6, 2000.
Total capital at August 31, 2000 was $50.3 billion, including
$19.0 billion of common and preferred stockholders' equity and
preferred securities issued by subsidiaries. Book value per common
share was $16.19, based on shares outstanding of 1.1 billion.
Morgan Stanley Dean Witter & Co. is a global financial services
firm and a market leader in securities, asset management, and credit
services. The Company has offices in New York, London, Tokyo, Hong
Kong, and other principal financial centers around the world and has
518 securities branch offices throughout the United States.
The analysts' conference call on Morgan Stanley Dean Witter's
third quarter earnings is scheduled for September 21, 11:00 am to noon
EDT. Those who wish to listen to the call may dial 800-818-9097
(domestic) or 785-749-3937 (international), or gain web access through
www.msdw.com. The automated passcode is 34567. A playback of the
meeting will be available after 2 p.m. EDT through October 5. The
playback can be accessed at msdw.com or by telephone at 888-566-0176
(domestic) or 402-351-0786 (international).
Access this press release on-line @www.msdw.com
(See Attached Schedules)
This release may contain forward-looking statements. These
statements, which reflect management's beliefs and expectations, are
subject to risks and uncertainties that may cause actual results to
differ materially. For a discussion of the risks and uncertainties
that may affect the Company's future results, please see "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in the Company's 1999 Annual Report to Shareholders and
the Company's Quarterly Reports on Form 10-Q for fiscal 2000.
(1) Source: Thomson Financial Securities Data - January 1 to
August 31, 2000.
(2) As of July 31, 2000.
-0-
*T
MORGAN STANLEY DEAN WITTER & CO.
Financial Summary
(unaudited, dollars in millions)
Quarter Ended Percentage Change From:
Aug 31, Aug 31, May 31, Aug 31, May 31,
2000 1999 2000 1999 2000
Net revenues
Securities $ 4,602 $ 3,849 $ 5,450 20% (16%)
Asset Management 639 545 629 17% 2%
Credit Services 1,053 935 989 13% 6%
Consolidated net
revenues $ 6,294 $ 5,329 $ 7,068 18% (11%)
Net income
Securities $ 825 $ 645 $ 1,090 28% (24%)
Asset Management 199 123 156 62% 28%
Credit Services 222 202 212 10% 5%
Consolidated net
income $ 1,246 $ 970 $ 1,458 28% (15%)
Preferred stock
dividend
requirements $ 9 $ 11 $ 9 (18%) --
Earnings applicable
to common
shares $ 1,237 $ 959 $ 1,449 29% (15%)
Earnings per
common share
Basic $ 1.14 $ 0.87 $ 1.32 31% (14%)
Diluted $ 1.09 $ 0.83 $ 1.26 31% (13%)
Average common
shares outstanding
Basic 1,088,218,669 1,100,113,462 1,098,245,490
Diluted 1,137,304,026 1,161,401,646 1,145,401,309
Period end
common
shares
outstanding 1,121,597,725 1,118,488,498 1,124,979,347
Return on common
equity 27.6% 25.9% 33.0%
Nine Months Ended
Aug 31, Aug 31, Percentage
2000 1999 Change
Net revenues
Securities $ 15,974 $ 12,187 31%
Asset Management 1,868 1,567 19%
Credit Services 2,931 2,559 15%
Consolidated net
revenues $ 20,773 $ 16,313 27%
Net income
Securities $ 3,159 $ 2,286 38%
Asset Management $ 513 335 53%
Credit Services 576 537 7%
Consolidated net
income $ 4,248 $ 3,158 35%
Preferred stock
dividend
requirements $ 27 $ 33 (18%)
Earnings applicable
to common
shares 4,221 $ 3,125 35%
Earnings per
common share
Basic $ 3.87 $ 2.82 37%
Diluted $ 3.70 $ 2.68 38%
Average common
shares
outstanding
Basic 1,090,967,941 1,106,725,932
Diluted 1,141,272,402 1,169,434,812
Period end
common
shares
outstanding 1,121,597,725 1,118,488,498
Return on common
equity 32.2% 28.9%
Note: Certain reclassifications have been made to prior period
amounts to conform to the current presentation.
MORGAN STANLEY DEAN WITTER & CO.
Consolidated Income Statement Information
(unaudited, dollars in millions)
Quarter Ended
Aug 31, 2000 Aug 31, 1999 May 31, 2000
Investment banking $ 1,172 $ 1,207 $ 1,370
Principal
transactions:
Trading 1,630 1,143 2,501
Investments 68 78 (236)
Commissions 831 681 972
Fees:
Asset management,
distribution and
administration 1,092 857 1,075
Merchant and
cardmember 447 392 447
Servicing 424 313 349
Interest
and dividends 5,897 3,899 5,123
Other 150 56 91
Total revenues 11,711 8,626 11,692
Interest expense 5,242 3,184 4,420
Provision for
consumer loan
losses 175 113 204
Net revenues 6,294 5,329 7,068
Compensation and
benefits 2,656 2,302 3,097
Occupancy and
equipment 202 166 174
Brokerage, clearing
and exchange fees 132 128 130
Information
processing
and communications 392 325 381
Marketing and
business development 507 408 502
Professional services 275 214 217
Other 255 223 272
Total non-interest
expenses 4,419 3,766 4,773
Gain on sale of
business 35 0 0
Income before
income taxes 1,910 1,563 2,295
Income tax expense 664 593 837
Net income $ 1,246 $ 970 $ 1,458
Preferred stock
dividend
requirements $ 9 $ 11 $ 9
Earnings applicable
to common shares $ 1,237 $ 959 $ 1,449
Compensation and
benefits as a %
of net revenues 42% 43% 44%
Note: Certain reclassifications have been made to prior period
amounts to conform to the current presentation.
MORGAN STANLEY DEAN WITTER & CO.
Consolidated Income Statement Information
(unaudited, dollars in millions)
Percentage Change From:
Aug 31, 1999 May 31, 2000
Investment banking (3%) (14%)
Principal
transactions:
Trading 43% (35%)
Investments (13%) 129%
Commissions 22% (15%)
Fees:
Asset management,
distribution and
administration 27% 2%
Merchant and
cardmember 14% --
Servicing 35% 21%
Interest
and dividends 51% 15%
Other 168% 65%
Total revenues 36% --
Interest expense 65% 19%
Provision for
consumer loan
losses 55% (14%)
Net revenues 18% (11%)
Compensation and
benefits 15% (14%)
Occupancy and
equipment 22% 16%
Brokerage, clearing
and exchange fees 3% 2%
Information
processing
and communications 21% 3%
Marketing and
business development 24% 1%
Professional services 29% 27%
Other 14% (6%)
Total non-interest
expenses 17% (7%)
Gain on sale of
business
Income before
income taxes 22% (17%)
Income tax expense 12% (21%)
Net income 28% (15%)
Preferred stock
dividend
requirements (18%) --
Earnings applicable
to common shares 29% (15%)
Note: Certain reclassifications have been made to prior period
amounts to conform to the current presentation.
MORGAN STANLEY DEAN WITTER & CO.
Consolidated Income Statement Information
(unaudited, dollars in millions)
Nine Months Ended Percentage
Aug 31, 2000 Aug 31, 1999 Change
Investment banking $ 3,877 $ 3,185 22%
Principal
transactions:
Trading 6,408 4,692 37%
Investments 263 493 (47%)
Commissions 2,787 2,033 37%
Fees:
Asset management,
distribution and
administration 3,133 2,450 28%
Merchant and
cardmember 1,337 1,090 23%
Servicing 1,060 876 21%
Interest
and dividends 15,769 11,070 42%
Other 335 174 93%
Total revenues 34,969 26,063 34%
Interest expense 13,594 9,341 46%
Provision for
consumer loan
losses 602 409 47%
Net revenues 20,773 16,313 27%
Compensation and
benefits 9,161 7,078 29%
Occupancy and
equipment 551 465 18%
Brokerage, clearing
and exchange fees 383 369 4%
Information
processing
and communications 1,119 949 18%
Marketing and
business development 1,480 1,184 25%
Professional services 675 567 19%
Other 802 608 32%
Total non-interest
expenses 14,171 11,220 26%
Gain on sale of
business 35 0
Income before
income taxes 6,637 5,093 30%
Income tax expense 2,389 1,935 23%
Net income $ 4,248 $ 3,158 35%
Preferred stock
dividend
requirements $ 27 $ 33 (18%)
Earnings applicable
to common shares $ 4,221 $ 3,125 35%
Compensation and
benefits as a %
of net revenues 44% 43%
Note: Certain reclassifications have been made to prior period
amounts to conform to the current presentation.
MORGAN STANLEY DEAN WITTER & CO.
Securities Income Statement Information
(unaudited, dollars in millions)
Quarter Ended Percentage Nine Month Percentage
Change From: Ended Change
Aug Aug May Aug May Aug Aug
31, 31, 31, 31, 31, 31, 31,
2000 1999 2000 1999 2000 2000 1999
Investment
banking $ 1,145 $1,187 $1,337 (4%) (14%) $ 3,773 $ 3,115 21%
Principal
transactions:
Trading 1,630 1,143 2,501 43% (35%) 6,408 4,692 37%
Investments 55 79 (242) (30%) 123% 236 485 (51%)
Commissions 828 679 968 22% (14%) 2,775 2,031 37%
Asset
management,
distribution
and
administration
fees 512 341 505 50% 1% 1,453 1,000 45%
Interest and
dividends 5,206 3,341 4,354 56% 20% 13,563 9,400 44%
Other 150 56 91 168% 65% 335 174 93%
Total
revenues 9,526 6,826 9,514 40% -- 28,543 20,897 37%
Interest
expense 4,924 2,977 4,064 65% 21% 12,569 8,710 44%
Net revenues 4,602 3,849 5,450 20% (16%) 15,974 12,187 31%
Compensation
and benefits 2,305 2,005 2,764 15% (17%) 8,136 6,225 31%
Occupancy and
equipment 163 126 137 29% 19% 440 354 24%
Brokerage,
clearing and
exchange fees 109 98 110 11% (1%) 321 279 15%
Information
processing
and
communications 245 180 244 36% -- 703 536 31%
Marketing and
business
development 176 124 184 42% (4%) 517 374 38%
Professional
services 223 155 166 44% 34% 525 396 33%
Other 147 140 158 5% (7%) 479 363 32%
Total non-
interest
expenses 3,368 2,828 3,763 19% (10%) 11,121 8,527 30%
Income before
income taxes 1,234 1,021 1,687 21% (27%) 4,853 3,660 33%
Income tax
expense 409 376 597 9% (31%) 1,694 1,374 23%
Net income $ 825 $ 645 $1,090 28% (24%) $3,159 $ 2,286 38%
Compensation
and benefits
as a % of net
revenues 50% 52% 51% 51% 51%
Non-compensation
expenses as a
% of net
revenues 23% 21% 18% 19% 19%
Profit
margin (1) 18% 17% 20% 20% 19%
(1) Net income as a % of net revenues.
MORGAN STANLEY DEAN WITTER & CO.
Asset Management Income Statement Information
(unaudited, dollars in millions)
Quarter Ended Percentage Change From:
Aug 31, Aug 31, May 31, Aug 31, May 31,
2000 1999 2000 1999 2000
Investment
banking $ 27 $ 20 $ 33 35% (18%)
Principal
transactions:
Investments 13 (1) 6 117%
Commissions 3 2 4 50% (25%)
Asset management,
distribution and
administration
fees 580 516 570 12% 2%
Interest and
dividends 18 12 19 50% (5%)
Other 0 0 0 -- --
Total revenues 641 549 632 17% 1%
Interest expense 2 4 3 (50%) (33%)
Net revenues 639 545 629 17% 2%
Compensation
and benefits 187 165 198 13% (6%)
Occupancy
and equipment 23 24 22 (4%) 5%
Brokerage,
clearing and
exchange fees 23 30 20 (23%) 15%
Information
processing and
communications 19 22 19 (14%) --
Marketing and
business
development 38 31 38 23% --
Professional
services 22 29 24 (24%) (8%)
Other 33 35 45 (6%) (27%)
Total non-interest
expenses 345 336 366 3% (6%)
Gain on sale
of business 35 0 0
Income before
income taxes 329 209 263 57% 25%
Income tax
expense 130 86 107 51% 21%
Net income $ 199 $ 123 $ 156 62% 28%
Compensation and
benefits as
a % of net
revenues 29% 30% 31%
Non-compensation
expenses as
a % of net
revenues 25% 31% 27%
Profit margin (1) 31% 23% 25%
(1) Net income as a % of net revenues.
Nine Months Ended Percentage
Aug 31, 2000 Aug 31, 1999 Change
Investment banking $ 104 $ 70 49%
Principal transactions:
Investments 27 8 238%
Commissions 12 2
Asset management,
distribution and
administration fees 1,680 1,450 16%
Interest and dividends 50 46 9%
Other 0 0 --
Total revenues 1,873 1,576 19%
Interest expense 5 9 (44%)
Net revenues 1,868 1,567 19%
Compensation and benefits 571 479 19%
Occupancy and equipment 66 71 (7%)
Brokerage, clearing and
exchange fees 62 90 (31%)
Information processing and
communications 56 64 (13%)
Marketing and business
development 112 97 15%
Professional services 67 89 (25%)
Other 109 103 6%
Total non-interest expenses 1,043 993 5%
Gain on sale of business 35 0
Income before income taxes 860 574 50%
Income tax expense 347 239 45%
Net income $ 513 $ 335 53%
Compensation and benefits
as a % of net revenues 31% 31%
Non-compensation expenses
as a % of net revenues 25% 33%
Profit margin (1) 27% 21%
(1) Net income as a % of net revenues.
MORGAN STANLEY DEAN WITTER & CO.
Credit Services Income Statement Information
(unaudited, dollars in millions)
Quarter Ended Percentage Nine Months Percent-
Change From: Ended age
Aug Aug May Aug May Aug Aug Change
31, 31, 31, 31, 31, 31, 31,
2000 1999 2000 1999 2000 2000 1999
Fees:
Merchant
and
card-
member $ 447 $ 392 $ 447 14% -- $ 1,337 $ 1,090 23%
Servicing 424 313 349 35% 21% 1,060 876 21%
Total
non-
interest
revenues 871 705 796 24% 9% 2,397 1,966 22%
Interest
revenue 673 546 750 23% (10%) 2,156 1,624 33%
Interest
expense 316 203 353 56% (10%) 1,020 622 64%
Net
interest
income 357 343 397 4% (10%) 1,136 1,002 13%
Provision
for
consumer
loan
losses 175 113 204 55% (14%) 602 409 47%
Net
credit
income 182 230 193 (21%) (6%) 534 593 (10%)
Net
revenues 1,053 935 989 13% 6% 2,931 2,559 15%
Compensation
and
benefits 164 132 135 24% 21% 454 374 21%
Occupancy
and
equipment 16 16 15 -- 7% 45 40 13%
Information
processing
and
communications 128 123 118 4% 8% 360 349 3%
Marketing
and
business
development 293 253 280 16% 5% 851 713 19%
Professional
services 30 30 27 -- 11% 83 82 1%
Other 75 48 69 56% 9% 214 142 51%
Total
non-
interest
expenses 706 602 644 17% 10% 2,007 1,700 18%
Income
before
income
taxes 347 333 345 4% 1% 924 859 8%
Income
tax
expense 125 131 133 (5%) (6%) 348 322 8%
Net
income $ 222 $ 202 $ 212 10% 5% $ 576 $ 537 7%
Compensation
and
benefits
as a % of
net
revenues 16% 14% 14% 15% 15%
Non-
compensation
expenses
as a % of
net
revenues 51% 50% 51% 53% 52%
Profit
margin (a) 21% 22% 21% 20% 21%
(a) Net income as a % of net revenues.
MORGAN STANLEY DEAN WITTER & CO.
Credit Services Income Statement Information
(unaudited, dollars in millions)
(Managed loan basis)
Quarter Ended
Aug 31, 2000 Aug 31, 1999 May 31, 2000
Fees:
Merchant and
cardmember $ 634 $ 541 $ 591
Other 0 0 0
Total non-interest
revenues 634 541 591
Interest revenue 1,617 1,250 1,558
Interest expense 728 466 688
Net interest income 889 784 870
Provision for
consumer loan losses 470 390 472
Net credit income 419 394 398
Net revenues 1,053 935 989
Compensation and benefits 164 132 135
Occupancy and equipment 16 16 15
Information processing
and communications 128 123 118
Marketing and business
development 293 253 280
Professional services 30 30 27
Other 75 48 69
Total non-interest
expenses 706 602 644
Income before income taxes 347 333 345
Income tax expense 125 131 133
Net income $ 222 $ 202 $ 212
Compensation and
benefits as a %
of net revenues 16% 14% 14%
Non-compensation
expenses as a %
of net revenues 51% 50% 51%
Profit margin (1) 21% 22% 21%
Percentage Change From:
Aug 31, 1999 May 31, 2000
Fees:
Merchant and
cardmember 17% 7%
Other -- --
Total non-interest
revenues 17% 7%
Interest revenue 29% 4%
Interest expense 56% 6%
Net interest income 13% 2%
Provision for
consumer loan losses 21% --
Net credit income 6% 5%
Net revenues 13% 6%
Compensation and benefits 24% 21%
Occupancy and equipment -- 7%
Information processing
and communications 4% 8%
Marketing and business
development 16% 5%
Professional services -- 11%
Other 56% 9%
Total non-interest
expenses 17% 10%
Income before income taxes 4% 1%
Income tax expense (5%) (6%)
Net income 10% 5%
Compensation and
benefits as a %
of net revenues
Non-compensation
expenses as a %
of net revenues
Profit margin (1)
Nine Months Ended Percentage
Aug 31, 2000 Aug 31, 1999 Change
Fees:
Merchant and
cardmember $ 1,810 $ 1,508 20%
Other 0 0 --
Total non-interest
revenues 1,810 1,508 20%
Interest revenue 4,615 3,652 26%
Interest expense 2,062 1,366 51%
Net interest income 2,553 2,286 12%
Provision for
consumer loan losses 1,432 1,235 16%
Net credit income 1,121 1,051 7%
Net revenues 2,931 2,559 15%
Compensation and benefits 454 374 21%
Occupancy and equipment 45 40 13%
Information processing
and communications 360 349 3%
Marketing and business
development 851 713 19%
Professional services 83 82 1%
Other 214 142 51%
Total non-interest
expenses 2,007 1,700 18%
Income before income taxes 924 859 8%
Income tax expense 348 322 8%
Net income $ 576 $ 537 7%
Compensation and
benefits as a %
of net revenues 15% 15%
Non-compensation
expenses as a %
of net revenues 53% 52%
Profit margin (1) 20% 21%
(1) Net income as a % of net revenues.
MORGAN STANLEY DEAN WITTER & CO.
Financial Information and Statistical Data
(unaudited)
Quarter Ended Percentage Change From:
Aug 31, Aug 31, May 31, Aug 31, May 31,
2000 1999 2000 1999 2000
MSDW
Total assets
(millions) $ 404,000 $ 341,000 $ 418,000 18% (3%)
Period end
common
shares
outstanding 1,121,597,725 1,118,488,498 1,124,979,347 -- --
Book value per
common share $ 16.19 $ 13.26 $ 15.66 22% 3%
Shareholders'
equity
(millions)(1) $ 19,054 $ 15,845 $ 18,510 20% 3%
Total capital
(millions)(2) $ 50,311 $ 38,740 $ 46,954 30% 7%
SECURITIES
($ billions)
Private Client
Group
Global
financial
advisors 13,789 12,309 13,513 12% 2%
Total
client
assets $ 778 $ 536 $ 669 45% 16%
Fee-based
client
account
assets(3) $ 155 $ 92 $ 139 68% 12%
Institutional
Securities(4)
Mergers and
acquisitions
announced
transactions(5)
MSDW global
market
volume $ 926.2 $ 588.2 $ 671.0
Rank 1 2 1
Worldwide
equity and
related
issues(5)
MSDW global
market
volume $ 43.9 $ 34.2 $ 26.5
Rank 2 2 2
ASSET
MANAGEMENT
($ billions)
Assets under
management or
supervision
Products offered
primarily to
individuals
Mutual funds
Equity $ 122 $ 87 $ 106 40% 15%
Fixed
income 49 55 49 (11%) --
Money
markets 55 44 52 25% 6%
Total
mutual
funds 226 186 207 22% 9%
ICS Assets 34 23 28 48% 21%
Separate
accounts,
unit trust
and other
arrangements 94 69 85 36% 11%
Sub-total
Individual 354 278 320 27% 11%
Products offered
primarily to
institutional
clients
Mutual funds 38 30 35 27% 9%
Separate accounts,
pooled vehicle
and other
arrangements 156 150 155 4% 1%
Sub-total
Institutional 194 180 190 8% 2%
Total assets
under
management or
supervision $ 548 $ 458 $ 510 20% 7%
(1) Includes preferred and common equity and preferred securities
issued by subsidiaries.
(2) Includes preferred and common equity, preferred securities
issued by subsidiaries, capital units and non-current portion of
long-term debt.
(3) Represents the amount of assets in client accounts where the
basis of payment for services is a fee calculated on those assets.
(4) Source: Thomson Financial Securities Data.
(5) Information is year to date and stated on a calendar year
basis.
F - 7
MORGAN STANLEY DEAN WITTER & CO.
Financial Information and Statistical Data
(unaudited, dollars in millions)
Quarter Ended
Aug 31, 2000 Aug 31, 1999 May 31, 2000
CREDIT SERVICES
Owned consumer loans
Period end $ 19,817 $ 16,557 $ 22,506
Average $ 20,091 $ 15,311 $ 23,459
Managed consumer
loans (1)
Period end $ 44,841 $ 34,381 $ 43,701
Average $ 44,345 $ 33,379 $ 42,961
Interest yield 14.05% 14.30% 13.69%
Interest spread 7.35% 8.61% 7.31%
Net charge-off
rate 4.18% 5.29% 4.21%
Delinquency rate
(over 30 days) 5.47% 6.34% 5.11%
Credit Card
Transaction volume
(billions) $ 21.9 $ 18.3 $ 21.9
Accounts (millions) 41.4 37.4 40.4
Active accounts
(millions) 23.1 21.3 23.1
Average receivables
per average active
account (actual $) $ 1,924 $ 1,579 $ 1,868
Discover Business
Services' increase
in merchant
locations
(thousands) 134 130 174
Percentage Change From:
Aug 31, 1999 May 31, 2000
CREDIT SERVICES
Owned consumer loans
Period end 20% (12%)
Average 31% (14%)
Managed consumer
loans (1)
Period end 30% 3%
Average 33% 3%
Interest yield (25 bp) 36 bp
Interest spread (126 bp) 4 bp
Net charge-off
rate (111 bp) (3 bp)
Delinquency rate
(over 30 days) (87 bp) 36 bp
Credit Card
Transaction volume
(billions) 20% --
Accounts (millions) 11% 2%
Active accounts
(millions) 9% --
Average receivables
per average active
account (actual $) 22% 3%
Discover Business
Services' increase
in merchant
locations
(thousands) 3% (23%)
Nine Months Ended Percentage
Aug 31, 2000 Aug 31, 1999 Change
CREDIT SERVICES
Owned consumer loans
Period end $ 19,817 $ 16,557 20%
Average $ 22,244 $ 15,458 44%
Managed consumer
loans (1)
Period end $ 44,841 $ 34,381 30%
Average $ 42,783 $ 32,845 30%
Interest yield 13.70% 14.25% (55 bp)
Interest spread 7.23% 8.61% (138 bp)
Net charge-off
rate 4.34% 5.70% (136 bp)
Delinquency rate
(over 30 days) 5.47% 6.34% (87 bp)
Credit Card
Transaction volume
(billions) $ 67.3 $ 50.1 34%
Accounts (millions) 41.4 37.4 11%
Active accounts
(millions) 23.1 21.3 9%
Average receivables
per average active
account (actual $) $ 1,870 $ 1,556 20%
Discover Business
Services' increase
in merchant
locations
(thousands) 407 382 7%
(1) Includes owned and securitized consumer loans.
--30--mem/sds/rm/mj/kb/jgm/db/flb/ny*
CONTACT: Investor Relations
John Beneke
212-762-7282
or
Media Relations
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212-761-4262
KEYWORD: NEW YORK
INDUSTRY KEYWORD: BANKING EARNINGS
COPYRIGHT 2000 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning
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