Morgan Stanley 1999 Annual Report Download - page 59

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page 57 |99 AR
fiscal year (dollars in millions, except share and per share data) 1999 1998 1997
Revenues:
Investment banking $ 4,523 $ 3,340 $ 2,694
Principal transactions:
Trading 5,983 3,283 3,191
Investments 725 89 463
Commissions 2,921 2,321 2,066
Fees:
Asset management, distribution and administration 3,170 2,889 2,525
Merchant and cardmember 1,492 1,647 1,704
Servicing 1,194 928 762
Interest and dividends 13,755 16,436 13,583
Other 165 198 144
Total revenues 33,928 31,131 27,132
Interest expense 11,390 13,514 10,806
Provision for consumer loan losses 529 1,173 1,493
Net revenues 22,009 16,444 14,833
Non-interest expenses:
Compensation and benefits 8,398 6,636 6,019
Occupancy and equipment 643 583 526
Brokerage, clearing and exchange fees 485 552 460
Information processing and communications 1,325 1,140 1,080
Marketing and business development 1,679 1,411 1,179
Professional services 836 677 451
Other 915 745 770
Merger-related expenses — —74
Total non-interest expenses 14,281 11,744 10,559
Gain on sale of businesses — 685 —
Income before income taxes and cumulative effect of accounting change 7,728 5,385 4,274
Provision for income taxes 2,937 1,992 1,688
Income before cumulative effect of accounting change 4,791 3,393 2,586
Cumulative effect of accounting change — (117) —
Net income $ 4,791 $ 3,276 $ 2,586
Preferred stock dividend requirements $ 44 $16,455 $ 66
Earnings applicable to common shares(1) $ 4,747 $ 3,221 $ 2,520
Earnings per common share(2):
Basic before cumulative effect of accounting change $ 4.33 $ 2.90 $ 2.19
Cumulative effect of accounting change — (0.10) —
Basic $ 4.33 $ 2.80 $ 2.19
Diluted before cumulative effect of accounting change $ 4.10 $ 2.76 $ 2.08
Cumulative effect of accounting change — (0.09) —
Diluted $ 4.10 $ 2.67 $ 2.08
Average common shares outstanding(2):
Basic 1,096,789,720 1,151,645,450 1,149,636,466
Diluted 1,159,500,670 1,212,588,130 1,212,612,950
(1) Amounts shown are used to calculate basic earnings per common share.
(2) Amounts have been retroactively adjusted to give effect for a two-for-one common stock split, effected in the form of a 100% stock dividend, which became effective on
January 26, 2000.
See Notes to Consolidated Financial Statements.
consolidated statements of income