Morgan Stanley 1999 Annual Report Download - page 20

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99 AR |page 18 In 1999, we took several significant steps toward establishing a global retail capability. We
acquired AB Asesores, the largest independent financial services firm in Spain with a distribution
network serving individual investors as well as leading positions in personal investment, equity
research, investment banking and asset management. We also formed an alliance with Sanwa
Bank to pursue retail brokerage and asset management opportunities in Japan, and in Italy we
announced our intention to purchase a 15 percent stake in Area S.p.A., a leading independent
retail financial advisory firm.
Second, we believe that the credit card business in markets outside the United States represents
a major growth opportunity. In September, we launched a new credit card in the United Kingdom
featuring a Cashback Bonus award, attractive pricing and no annual fee. The results in card
acceptance and receivables growth for the first several months have been excellent.
FINANCIAL STRENGTH
Few firms can match Morgan Stanley Dean Witter’s financial strength and
resources. The impressive growth in our earnings over the past three years has
been a key source of this strength, enabling us to generate substantial capital
internally and serving as a powerful platform for further expansion.
Our firm has one of the largest capital bases in the financial services industry. Our total capital
at fiscal year-end was $39.7 billion, including shareholders’ equity of $17.4 billion. While our
capital base has grown to support our expanding business, we also were able to return capital to
shareholders this past year by increasing our quarterly dividend by 67 percent and by repurchasing
approximately 50 million shares of our common stock. We expect to continue to utilize stock
99
98
97
96
39,699
33,577
31,152
37,922
TOTAL CAPITAL*
(in millions of U.S. dollars)
*Excludes the current portion of long-term debt and
includes Capital Units and Preferred Securities
Issued by Subsidiaries
SHAREHOLDERS’ EQUITY*
(in millions of U.S. dollars)
*Includes Preferred Securities Issued by Subsidiaries
99
98
97
96
14,519
17,414
13,956
11,702
99
98
97
96
4,791
3,276
2,586
1,980
NET INCOME
(in millions of U.S. dollars)