Morgan Stanley Fourth Quarter and Full Year 2019 Earnings Results
Morgan Stanley Reports Fourth Quarter Net Revenues of $10.9 Billion and EPS of $1.30; Full Year Net
Revenues of $41.4 Billion and EPS of $5.19
NEW YORK, January 16, 2020 – Morgan Stanley (NYSE: MS) today reported net revenues of $10.9 billion for the
fourth quarter ended December 31, 2019 compared with $8.5 billion a year ago. Net income applicable to Morgan
Stanley was $2.2 billion, or $1.30 per diluted share,1 compared with net income of $1.5 billion, or $0.80 per diluted
share,1 for the same period a year ago. The current quarter included an intermittent net discrete tax benefit of $158
million or $0.10 per diluted share compared with an intermittent net discrete tax benefit of $111 million or $0.07 perdiluted share a year ago.2 The fourth quarter of 2019 was also impacted by severance costs of $172 million
associated with a December employee action.3
Full year net revenues were a record $41.4 billion compared with $40.1 billion a year ago. Net income applicable toMorgan Stanley for the current year was $9.0 billion, or $5.19 per diluted share,1 compared with net income of $8.7
billion, or $4.73 per diluted share,1 a year ago. The current year included an intermittent net discrete tax benefit of$348 million, or $0.21 per diluted share compared with an intermittent net discrete tax benefit of $203 million or $0.12
per diluted share a year ago.2
James P. Gorman, Chairman and Chief Executive Officer, said, “We delivered strong quarterly earnings across all ofour businesses. Firmwide revenues were over $10 billion for the fourth consecutive quarter, resulting in record fullyear revenues and net income. This consistent performance met all of our stated performance targets.”

Financial Summary4
Firm ($MM, except per share data)

Highlights
4Q 2019

4Q 2018

FY 2019

FY 2018

Net revenues$10,857$8,548$41,419$40,107

Compensation expense$5,228$3,787$18,837$17,632

Non-compensation expenses
7
Pre-tax income$2,896$2,904$11,281$11,238$2,733$1,857$11,301$11,237

Net income app. to MS$2,239$1,531$9,042$8,748

Expense efficiency ratio8

75%

78%

73%

72%

Earnings per diluted share

$1.30

$0.80

$5.19

$4.73

Book value per share$45.82$42.20$45.82$42.20

Tangible book value per share$40.01$36.99$40.01$36.99

11.3%

7.7%

11.7%

11.8%

13.0%

8.8%

13.4%

13.5%

5

Return on equity

5

Return on tangible equity
Institutional Securities
Net revenues$5,054$3,839$20,386$20,582

Investment Banking$1,576$1,417$5,734$6,088

Sales & Trading$3,194$2,487$13,695$13,777

Net revenues$4,582$4,144$17,737$17,242

Fee-based client assets ($Bn)9$1,267$1,046$1,267$1,046

Fee-based asset flows ($Bn)10

$24.9

$16.2

$64.9

$65.9

Loans ($Bn)

$80.1

$72.2

$80.1

$72.2

•

Fourth quarter net revenues 27% increase
helped deliver record full year net revenues
of $41.4 billion.

•

Achieved record full year net income reflecting
the strength and balance of the franchise.

•

Full year ROE of 11.7%5 and ROTCE of
13.4%5 in line with our target ranges.

•

Institutional Securities reflects the fourthconsecutive quarter of net revenues over $5
billion. Results for the full year reflect solid
performance across products despite amixed market backdrop.

•

Wealth Management delivered a pre-tax
margin of 27.2% for the full year reflecting
record net revenues and pre-tax income.6,7

Wealth Management• Investment Management results reflect bothInvestment Management
Net revenues$1,356

AUM ($Bn)11$552

Long-term net flows ($Bn)12$6.7

Media Relations: Wesley McDade 212-761-2430$684$3,763$2,746

$463

$552

$463

$(3.2)

$15.4

$4.8

a strong quarter and full year on accrued
carried interest and higher fee revenues.
AUM up 19% reflecting continued strong
positive net flows.
Investor Relations: Sharon Yeshaya 212-761-1632

Fourth Quarter Results
Institutional Securities
Institutional Securities reported net revenues for the current quarter of $5.1 billion compared with $3.8 billion a year
ago. Pre-tax income was $1.1 billion compared with $780 million a year ago.7
Investment Banking revenues up 11% from a year ago:•

Advisory revenues decreased from a year ago driven bylower levels of completed M&A activity.

($ millions)•

Equity underwriting revenues increased from a year ago
driven by higher revenues on IPOs, particularly in Asia,and follow-on offerings.

•

4Q 2019

4Q 2018

Net Revenues$5,054$3,839Fixed income underwriting revenues increased from ayear ago primarily driven by higher investment grade andnon-investment grade bond fees.

Investment Banking$1,576$1,417Advisory

$654

$734

Sales and Trading net revenues up 28% from a year ago:

Equity underwriting

$422

$323

Fixed income underwriting

$500

$360

Sales and Trading$3,194$2,487

Equity$1,920$1,929Fixed Income$1,273

$564

$1

$(6)

Investments and Other

$284

$(65)

Investments

$68

$(52)

Other

$216

$(13)

• Equity sales and trading net revenues were in line with ayear ago reflecting continued strength in prime brokerageand solid results in cash equities, partially offset by
declines in derivatives on lower volatility.
• Fixed Income sales and trading net revenues increased
from a year ago reflecting improvement across all
businesses with particular strength in credit products.
• Other sales and trading net revenues compared with ayear ago reflect gains on investments associated withcertain employee deferred compensation plans, offset bylosses on economic hedges associated with corporate
lending activity.
Investments and Other:• Investment revenues increased from a year ago driven bymark-to-market net gains on holdings of publicly tradedinvestments compared with net losses in the prior year.

Other• Other revenues increased from a year ago primarily
related to mark-to-market gains associated with corporate
lending activity and a gain on sale of a commodities
related intangible asset.

Total Expenses$3,929$3,059Compensation$2,057$1,179Total Expenses:

Non-compensation$1,872$1,880• Compensation expense increased from a year ago driven
by higher revenues, increases in the fair value of deferredcompensation plan referenced investments andseverance costs associated with the December employee
action of $124 million.3

2

Wealth Management
Wealth Management reported net revenues for the current quarter of $4.6 billion compared with $4.1 billion a year ago.
Pre-tax income of $1.2 billion7 in the current quarter resulted in a pre-tax margin of 25.4%.6
Net revenues up 11% from a year ago:
• Asset management revenues increased from a year ago
reflecting higher asset levels with record positive flows.
• Transactional revenues13 increased from a year ago
primarily driven by gains on investments associated withcertain employee deferred compensation plans andincreases in investment banking activity.
• Net interest income decreased 6% compared with a year
ago primarily driven by changes in funding mix. WealthManagement client liabilities14 were $90 billion at quarterend compared with $83 billion a year ago.

($ millions)

4Q 2019

4Q 2018

Net Revenues$4,582$4,144

Asset management$2,655$2,576

Transactional

$829

$422

Net interest$1,033$1,095$65$51

Total Expenses$3,419$3,134Compensation$2,590$2,286

$829

$848

13

Other

Total Expenses:• Compensation expense increased from a year ago
primarily driven by increases in the fair value of deferredcompensation plan referenced investments and severance
costs associated with the December employee action3
partially offset by decreases in retention note expense.

Non-compensation

Investment Management
Investment Management reported net revenues of $1.4 billion compared with $684 million a year ago. Pre-tax income
was $447 million compared with $74 million a year ago.7
Net revenues up 98% from a year ago:($ millions)• Asset management revenues increased from a year ago
driven by higher levels of AUM on strong net flows andhigher performance fees.
• Investment revenues increased from a year ago on
accrued carried interest related to an underlying
investment’s initial public offering, subject to sales
restrictions, within an Asia private equity fund managed onbehalf of clients.
• Other revenues were negative $50 million compared withnegative $26 million in the prior year. Results include
impairments of two distinct equity method investments inthird party asset managers, one in each year.
Total Expenses:• Compensation expense increased from a year ago
principally due to an increase in carried interest andseverance costs associated with the December employee
action.3

4Q 2019

4Q 2018$1,356$684

Asset management

$736

$628

Investments

$670

$82

Other

$(50)

$(26)

Total Expenses

$909

$610

Compensation

$581

$322

Non-compensation

$328

$288

Net Revenues• Non-compensation expenses increased from a year ago
driven by higher brokerage and clearing costs, relating tohigher fee revenue and client capital raising.
3

Full Year Results
Institutional Securities•••

Institutional Securities net revenues reflect a strong
performance across all businesses which resulted in
pre-tax income of $5.5 billion compared with $6.3
billion in the prior year.7
Investment Banking net revenues declined from a year
ago. Results reflect solid underwriting revenues whichwere essentially unchanged from a strong prior year,
offset by declines in advisory revenues on lower
completed M&A volumes.
Sales and Trading net revenues were in line with theprior year. Fixed Income sales and trading increased
11% from a year ago on strong client engagement
while Equity sales and trading net revenues decreased
in an environment characterized by lower cash market
volumes and lower volatility in derivatives.

•

Investment revenues increased from a year ago
reflecting mark-to-market net gains on publicly tradedinvestments.

•

Other revenues increased from a year ago reflecting
mark-to-market gains on corporate lending activity
partially offset by lower results in our Japanese joint
venture Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd.

($ millions)

FY 2019

FY 2018

Net Revenues$20,386$20,582

Investment Banking$5,734$6,088

Sales and Trading$13,695$13,777

Investments

$325

$182

Other

$632

$535

Total Expenses$14,896$14,322Compensation$7,433$6,958Non-compensation$7,463$7,364• Compensation expense increased from a year ago
driven by increases in the fair value of deferredcompensation plan referenced investments, higher
salaries and severance costs associated with theDecember employee action,3 partially offset by lower
discretionary incentive compensation.
• Non-compensation expenses increased from a year
ago reflecting higher technology costs, partially offset
by lower professional services.

4

Wealth Management•

Wealth Management’s record pre-tax income of $4.8
billion delivered a pre-tax margin of 27.2%.6,7•

Asset management revenues increased modestly from ayear ago as the impact of higher asset levels during theyear were offset by lower fee based client asset levels at
the beginning of the year due to significant market
declines in the fourth quarter of 2018.

••($ millions)

FY 2019

FY 2018

Net Revenues$17,737$17,242

Asset management$10,199$10,158

Transactional$2,969$2,558Net interest$4,222$4,277$347$249

Total Expenses$12,905$12,721

Compensation$9,774$9,507

Non-compensation$3,131$3,214

FY 2019

FY 2018

Net Revenues$3,763$2,746

Asset management$2,629$2,468Investments$1,213

$254

$(79)

$24

13

13

Transactional revenues increased from a year ago
primarily driven by gains on investments associated withcertain employee deferred compensation plans.
Net interest income remained essentially unchanged froma year ago reflecting higher costs due to changes infunding mix and increases in mortgage securities
prepayment amortization expense partially offset by the
impact of higher average rates and growth in banklending.

•

Other revenues increased from a year ago driven byhigher realized gains on available for sale securities.

•

Compensation expense increased from a year ago
primarily driven by increases in the fair value of deferredcompensation plan referenced investments and higher
salaries, partially offset by decreases in retention note
expense.

•Non-compensation expenses decreased 3% from a year
ago reflecting continued focus on expense discipline.

Other

Investment Management•

Investment Management net revenues increased 37%
from a year ago, resulting in pre-tax income of $985
million compared with $464 million in the prior year.7• Asset management revenues increased from a year ago
driven by higher levels of AUM on strong net flows andhigher performance fees.
• Investment revenues increased from a year ago on
accrued carried interest primarily in Asia private equity.

($ millions)• Other revenues were negative $79 million compared withpositive revenues a year ago, driven by thedeconsolidation of a fund and impairments on equity
method investments.

Other

Total Expenses$2,778$2,282• Compensation expense increased from a year ago
principally due to an increase in carried interest.

Compensation$1,630$1,167

Non-compensation$1,148$1,115• Non-compensation expenses increased from a year ago
driven by higher brokerage and clearing costs, relating tohigher fee revenue and client capital raising.
5

Other Matters• The Firm repurchased $1.5 billion of its
outstanding common stock during the quarteras part of its Share Repurchase Program.
During the year ended December 31, 2019, theFirm repurchased $5.4 billion of its common
stock or approximately 121 million shares.

4Q 2019

4Q 2018 FY 2019 FY 2018

Common Stock Repurchases
Repurchases ($MM)$1,500$1,180$5,360$4,860

31

27

121

97

• The Board of Directors declared a $0.35
quarterly dividend per share, payable on
February 14, 2020 to common shareholders ofrecord on January 31, 2020.

Number of Shares (MM)Average Price$48.49$43.77$44.23$50.08• The effective tax rate for the current quarter was
15.7% and the full year was 18.3% which
included intermittent net discrete tax benefits of$158 million and $348 million, respectively. The
effective tax rate in the prior year quarter was
16.2% and the full year was 20.9%, which
included intermittent net discrete tax benefits of$111 million and $203 million, respectively. Theintermittent net discrete tax benefits in thecurrent and prior year periods were primarily
associated with remeasurement of reserves asa result of new information pertaining to theresolution of multi-jurisdiction tax examinations
and other tax matters.

Period End Shares (MM)

1,594

1,700

1,594

1,700

Tax Rate

15.7%

16.2%

18.3%

20.9%

16.4%

16.9%

Tier 1 capital

18.6%

19.2%

Tier 1 leverage17

8.2%

8.4%

6.3%

6.5%

Capital15

Common Equity Tier 1
16capital
16

SLR

18

6

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities,
wealth management and investment management services. With offices in more than 41 countries, the Firm’s
employees serve clients worldwide including corporations, governments, institutions and individuals. For further
information about Morgan Stanley, please visit www.morganstanley.com.
A financial summary follows. Financial, statistical and business-related information, as well as information regarding
business and segment trends, is included in the Financial Supplement. Both the earnings release and the Financial
Supplement are available online in the Investor Relations section at www.morganstanley.com.

NOTICE:The information provided herein and in the financial supplement may include certain non-GAAP financial
measures. The definition of such measures or reconciliation of such metrics to the comparable U.S. GAAP figures areincluded in this earnings release and the Financial Supplement, both of which are available on
www.morganstanley.com.

This earnings release may contain forward-looking statements, including the attainment of certain financial and othertargets, objectives and goals. Readers are cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date on which they are made, which reflect management’s current estimates, projections,
expectations, assumptions, interpretations or beliefs and which are subject to risks and uncertainties that may cause
actual results to differ materially. The Firm does not undertake to update the forward-looking statements to reflect the
impact of circumstances or events that may arise after the date such forward-looking statements were made. For a
discussion of risks and uncertainties that may affect the future results of the Firm, please see “Forward-Looking
Statements” immediately preceding Part I, Item 1, “Competition” and “Supervision and Regulation” in Part I, Item 1,“Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’s Discussion and Analysis ofFinancial Condition and Results of Operations” in Part II, Item 7 and “Quantitative and Qualitative Disclosures about
Risk” in Part II, Item 7A in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2018 and otheritems throughout the Form 10-K, the Firm’s Quarterly Reports on Form 10-Q and the Firm’s Current Reports on Form
8-K, including any amendments thereto.

7

1

Includes preferred dividends related to the calculation of earnings per share for the fourth quarter of 2019 and 2018 of
approximately $154 million and $170 million, respectively. Includes preferred dividends related to the calculation of
earnings per share for the years ended 2019 and 2018 of approximately $530 million and $526 million, respectively.
2

The intermittent net discrete tax benefits in the current and prior year periods were primarily associated withremeasurement of reserves as a result of new information pertaining to the resolution of multi-jurisdiction tax
examinations and other tax matters.

3

The Firm recorded severance costs of $172 million in the fourth quarter of 2019, associated with a business unit andinfrastructure December employee action, which were reported in the business segments’ results as follows:
Institutional Securities $124 million, Wealth Management $37 million and Investment Management $11 million.
4

The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the
United States (U.S. GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures”
in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities
and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or futurefinancial performance, financial positions, or cash flows that is subject to adjustments that effectively exclude, or
include amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP.
Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information to analysts,
investors and other stakeholders in order to provide them with greater transparency about, or an alternative method forassessing our financial condition, operating results, or prospective regulatory capital requirements. These measures
are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP
financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also
generally define it or present the most directly comparable financial measure calculated and presented in accordancewith U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference
and such comparable U.S. GAAP financial measure.
5

Return on average common equity and return on average tangible common equity are non-GAAP financial measuresthat the Firm considers useful for analysts, investors and other stakeholders to allow better comparability of period-toperiod operating performance and capital adequacy. The calculation of return on average common equity and returnon average tangible common equity represents full year net income or annualized net income applicable for the quarter
applicable to Morgan Stanley less preferred dividends as a percentage of average common equity and averagetangible common equity, respectively. Tangible common equity, also a non-GAAP financial measure, represents
common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction.

6

Pre-tax margin is a non-GAAP financial measure that the Firm considers useful for analysts, investors and otherstakeholders to assess operating performance. Pre-tax margin represents income (loss) before taxes divided by net
revenues.
7

Pre-tax income is a non-GAAP financial measure that the Firm considers useful for analysts, investors and otherstakeholders to assess operating performance. Pre-tax income represents income (loss) before taxes.
8

The Firm expense efficiency ratio represents total non-interest expenses as a percentage of net revenues.

9

Wealth Management fee-based client assets represent the amount of assets in client accounts where the basis of
payment for services is a fee calculated on those assets.
10

Wealth Management fee-based asset flows include net new fee-based assets, net account transfers, dividends,
interest, and client fees and exclude institutional cash management related activity.

11

AUM is defined as assets under management.

812Long-term net flows include the Equity, Fixed Income and Alternative/Other asset classes and exclude the Liquidity
asset class.
13

Transactional revenues include investment banking, trading, and commissions and fee revenues.

14

Wealth Management client liabilities reflect U.S. Bank Subsidiaries’ lending and broker-dealer margin activity. U.S.
Bank refers to the Firm’s U.S. Bank operating subsidiaries Morgan Stanley Bank, N.A. and Morgan Stanley Private
Bank, National Association.

15

Capital ratios are estimates as of the press release date, January 16, 2020.

16

The Firm’s risk-based capital ratios for purposes of determining regulatory compliance are the lower of the capitalratios computed under the (i) standardized approaches for calculating credit risk and market risk risk-weighted assets(“RWAs”) (the “Standardized Approach”); and (ii) applicable advanced approaches for calculating credit risk, market
risk and operational risk RWAs (the “Advanced Approach”). At December 31, 2019 and December 31, 2018, theFirm’s ratios are based on the Standardized Approach. For information on the calculation of regulatory capital andratios for prior periods, please refer to the Firm’s Annual Report on Form 10-K for the year ended December 31, 2018.
17

The Tier 1 leverage ratio is a non-risk based capital requirement that measures the Firm’s leverage. Tier 1 leverage
ratio utilizes Tier 1 capital as the numerator and average adjusted assets as the denominator.
18

The Firm must maintain a Tier 1 supplementary leverage ratio of 5% inclusive of a capital buffer of at least 2% inorder to avoid limitations on capital distributions, including dividends and stock repurchases, and discretionary bonus
payments to executive officers. The Firm’s Supplementary Leverage Ratio utilizes a Tier 1 capital numerator of
approximately $73.3 billion and $70.6 billion, and supplementary leverage exposure denominator of approximately$1.16 trillion and $1.09 trillion, for the fourth quarter of 2019 and 2018, respectively.

9Morgan Stanley
Consolidated Income Statement Information(unaudited, dollars in millions)

Revenues:
Investment banking
Trading
Investments
Commissions and fees
Asset management
Other
Total non‐interest revenues

Dec 31, 2019

Quarter Ended
Sep 30, 2019

Dec 31, 2018

$

$

$

Interest income
Interest expense
Net interest
Net revenues
Non‐interest expenses:
Compensation and benefits
Non‐compensation expenses:
Occupancy and equipment
Brokerage, clearing and exchange fees
Information processing and communications
Marketing and business development
Professional services
Other
Total non‐compensation expenses
Total non‐interest expenses
Income (loss) from continuing operations before taxes
Income tax provision / (benefit) from continuing operations
Income (loss) from continuing operations
Gain (loss) from discontinued operations after tax
Net income (loss)
Net income applicable to nonredeemable noncontrolling interests
Net income (loss) applicable to Morgan Stanley
Preferred stock dividend / Other
Earnings (loss) applicable to Morgan Stanley common shareholders

$

$

1,696
2,314
739
984
3,451
240
9,424

1,635
2,608
87
990
3,363
131
8,814

Percentage Change From:
Sep 30, 2019 Dec 31, 2018

1,488
1,736
28
1,046
3,266
(5)
7,559

4%
(11%)
*
(1%)
3%
83%
7%

14%
33%
*
(6%)
6%
*
25%

Twelve Months Ended
Dec 31, 2019 Dec 31, 2018$

6,163
11,095
1,540
3,919
13,083925
36,725$Percentage
Change6,482
11,551437
4,190
12,898743
36,301

(5%)
(4%)
*
(6%)
1%
24%
1%

3,952
2,519
1,433
10,857

4,350
3,132
1,218
10,032

4,111
3,122
989
8,548

(9%)
(20%)
18%
8%

(4%)
(19%)
45%
27%

17,09812,404
4,694
41,41913,892
10,086
3,806
40,107

23%
23%
23%
3%

5,228

4,427

3,787

18%

38%

18,837

17,632

7%

375
633
567
200
555
566
2,896

353
637
557
157
531
660
2,895

358
598
529
220
605
594
2,904

6%
(1%)
2%
27%
5%
(14%)
‐‐

5%
6%
7%
(9%)
(8%)
(5%)
‐‐

1,428
2,493
2,194
660
2,137
2,369
11,281

1,391
2,393
2,016
691
2,265
2,482
11,238

3%
4%
9%
(4%)
(6%)
(5%)
‐‐

8,124

7,322

6,691

11%

21%

30,11828,870

4%

2,733
428
2,305
0
2,305
66
2,239
154
2,085

2,710
492
2,218
0
2,218
45
2,173
113
2,060

1,857
300
1,557
1
1,558
27
1,531
170
1,361

1%
(13%)
4%
‐‐
4%
47%
3%
36%
1%

47%
43%
48%
*
48%
144%
46%
(9%)
53%

11,301
2,064
9,237
0
9,237
195
9,042
530
8,512

11,237
2,350
8,887
(4)
8,883
135
8,748
526
8,222

1%
(12%)
4%
*
4%
44%
3%
1%
4%

$

$

$

$

$

$

$

$

The End Notes are an integral part of this presentation. Refer to the Financial Supplement on pages 12 ‐ 17 for Definition of U.S. GAAP to Non‐GAAP Measures, Definition of Performance Metrics and Terms,
Supplemental Quantitative Details and Calculations and Legal Notice for additional information.

10Morgan Stanley
Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
Dec 31, 2019

Quarter Ended
Sep 30, 2019 Dec 31, 2018

$
$

$
$

Percentage Change From:
Sep 30, 2019 Dec 31, 2018

Twelve Months Ended
Dec 31, 2019 Dec 31, 2018

Percentage
ChangeFinancial Metrics:
Earnings per basic share
Earnings per diluted share
Return on average common equity
Return on average tangible common equity
Book value per common share
Tangible book value per common share
Excluding intermittent net discrete tax provision / benefit
Adjusted earnings per diluted share
Adjusted return on average common equity
Adjusted return on average tangible common equity

1.33
1.30
11.3%
13.0%

1.28
1.27

$
$

11.2%
12.9%

0.81
0.80

4%
2%

64%
63%

$
$

7.7%
8.8%

$
$

45.82
40.01

$
$

45.49
39.73

$
$

42.20
36.99

$

1.20
10.5%
12.0%

$

1.21
10.7%
12.3%

$

0.73
7.1%
8.1%

5.26
5.19

$
$

11.7%
13.4%

(1%)

64%

4.81
4.73

9%
10%

11.8%
13.5%

$
$

45.82
40.01

$
$

42.20
36.99

$

4.98
11.2%
12.9%

$

4.61
11.5%
13.2%

8%

Financial Ratios:
Pre‐tax profit margin
Compensation and benefits as a % of net revenues
Non‐compensation expenses as a % of net revenues
Firm expense efficiency ratio
Effective tax rate from continuing operations

25%
48%
27%
75%
15.7%

27%
44%
29%
73%
18.2%

22%
44%
34%
78%
16.2%

Period end common shares outstanding (millions)Average common shares outstanding (millions)
Basic
Diluted

1,594

1,624

1,700

(2%)

(6%)

1,573
1,602

1,604
1,627

1,674
1,705

(2%)
(2%)

(6%)
(6%)

Worldwide employees

60,43160,532

60,348

‐‐

‐‐

27%
45%
27%
73%
18.3%

28%
44%
28%
72%
20.9%

1,617
1,640

1,708
1,738

Statistical Data:

The End Notes are an integral part of this presentation. Refer to the Financial Supplement on pages 12 ‐ 17 for Definition of U.S. GAAP to Non‐GAAP Measures, Definition of Performance Metrics and Terms,
Supplemental Quantitative Details and Calculations and Legal Notice for additional information.

11

(5%)
(6%)