Morgan Stanley 2001 Annual Report Download

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ANNUAL REPORT 2001
To Our Shareholders:
In a year that challenged our company, our industry
and our world, the people of Morgan Stanley displayed
great discipline and resolve. We believe our company
has emerged even stronger and better prepared for
the future. The long-term growth trends that shape
our strategy are intact. And more than ever, we are
focused on the working relationships with clients
that will drive our future growth.
To Our Shareholders:
In a year that challenged our company, our industry
and our world, the people of Morgan Stanley displayed
great discipline and resolve. We believe our company
has emerged even stronger and better prepared for
the future. The long-term growth trends that shape
our strategy are intact. And more than ever, we are
focused on the working relationships with clients
that will drive our future growth.

Table of contents

  • Page 1
    ANNUAL REPORT 2 0 0 1 To Our Shareholders: In a year that challenged our company, our industry and our world, the people of Morgan Stanley displayed great discipline and resolve. We believe our company has emerged even stronger and better prepared for the future. The long-term growth trends that ...

  • Page 2
    For a more complete discussion of our 2001 results, please refer to our Annual Report on Form 10-K and visit us online at www.morganstanley.com.

  • Page 3
    ... of that day? For the Morgan Stanley family, the attacks hit us right at home - 3,7 0 0 of our people worked in the World Trade Center. Sadly, seven of them and six contract service professionals did not make it out that day. But we also take pride in the way our company responded in the immediate...

  • Page 4
    ...cumulative effect of accounting change Extraordinary item Cumulative effect of accounting change Basic Diluted before extraordinary item and cumulative effect of accounting change Extraordinary item Cumulative effect of accounting change Diluted Book value per common share Dividends per common share...

  • Page 5
    ... results despite the generally difficult environment. > In equities, we achieved significant market share gains in secondary trading for institutional clients in the U.S. and in Europe, especially in listed stocks, over-the-counter (OTC) stocks, convertible securities and listed options. Fixed...

  • Page 6
    ...76 RETURN ON COMMON EQUITY (In Percent) DISCOVER FINANCIAL SERVICES NET CHARGE-OFF RATE (In Percent) > Our market share in retail securities increased in terms the year. In Europe, gross domestic product (GDP) annual growth fell from 3.3 percent to 1.6 percent. of number of financial advisors...

  • Page 7
    ... continue business. > In credit services, when U.S. mail delivery of payments was delayed immediately after September 11, Discover was the only large credit card issuer to suspend customer late fees during the disruption of service. > Our investment bankers worked with Comcast CONTROLLING...

  • Page 8
    ... card business. We continue to see the accelerated combination of firms in pursuit of a global capital markets strategy. In the past 18 months, UBS acquired PaineWebber for $12 billion to gain retail distribution and asset management in the U.S., and Chase completed its acquisition of J.P. Morgan...

  • Page 9
    ... and talented people, and strong client-centered culture give us the competitive advantage to continue to be a market share leader in our core businesses. > Continue to invest in people and capital, notably in both our equity and fixed income trading and sales activities in Europe. > Maintain cost...

  • Page 10
    ... take this group of talented, dedicated professionals into any competitive environment and be confident of success. Sincerely, PH ILIP J. P U RC ELL Chairman & Chief Executive Officer RO BERT G. SC OT T President & Chief Operating Officer February 5, 2002 8 MORGAN STANLEY ANNUAL REPORT 2 0 0 1

  • Page 11
    ... to help our people and so many others. We're proud that Morgan Stanley employees from around the world have come forward to give help and support to these families through the Morgan Stanley Victims Relief Fund. T I T U S D AVI D SO N J ENNIFER DE J E SU S J O SE PH D I P I LAT O G O DWIN FO RD...

  • Page 12
    ... on a financial services firm to understand the full rang e of their needs, to actively help them think and work through complex challenges, and to offer not just a produc t but an entire firm 's wor th of talent. Across Morgan Stanley, we are finding new ways to build the working relationships that...

  • Page 13
    ... times, and I can't say I give my trust easily. Right now, my mind is on writing a book. I need somebody who 's knowledgeable looking out for my best interests, and I think I have that in Carol. " MORGAN STANLEY CLIENT LINDA LEHRER, TALKING ABOUT HER FINANCIAL ADVISOR CAROL GLAZER Building on trust

  • Page 14
    ...out of New York City to multiple sites around the country, with Web-based components as well; it focuses on assessing financial plans and then finding the right solutions. Additional training will continue throughout the career of every Morgan Stanley financial advisor. MORGAN STANLEY ANNUAL REPORT...

  • Page 15
    ... with each. The firm has to understand what we're all about, and the parts of their organization have to talk to each other. Fortunately, Morgan Stanley has this capability. " LAURENCE FINK, CHAIRMAN & CEO, BLACKROCK INC. Focused on listening

  • Page 16
    ... a special payment plan. Being treated with respect and understanding by Discover Card can encourage the loyalty of Cardmembers long after their temporary problems have passed. ® ® 1 MILLION PHONE CALLS The New York Stock Exchange and other major U.S. stock exchanges did not open on the morning...

  • Page 17
    " Our close working relationship with Morgan Stanley - more than 3 0 people from both organizations working together for many months - led us to jointly develop an innovative financing structure, the first of its kind in the energy delivery industry. Securitizing our energy delivery business was not...

  • Page 18
    ... so that our advice, products and strategic asset allocation recommendations can be tailored more closely to each person's investment objectives. BUSINESS CONTINUITY PLANNING Institutional clients taking a new look at their own preparedness have asked Morgan Stanley for information on our Business...

  • Page 19
    " In a demanding environment, Morgan Stanley has been a value-adding partner whose strength, depth and commitment have been greatly appreciated by my colleagues at France Telecom and myself. " MICHEL BON , CHAIRMAN & CEO, FRANCE TELECOM Achieving results

  • Page 20
    ... third largest Chinese IPO in history and was listed on the Hong Kong, London and New York stock exchanges. Since then, Morgan Stanley has continued working closely with management to transform Sinopec Corp. into a world-class corporation. In June 2001, Morgan Stanley acted as financial advisor in...

  • Page 21
    ... camp and done a fine job for us all the way. Morgan Stanley has sort of fathered us along and took us from being nothing to perhaps their largest prime brokerage client. I think they work honestly, decently and effectively. As new funds spring up from Tiger and they ask me for advice, I've always...

  • Page 22
    ... and The Vanguard Group. These ETF sponsors now rely on us not only as a major broker-dealer, liquidity provider and key marketer but also as a vital resource to help them navigate the ever-changing and diverse regulatory requirements of the world 's equity markets as they introduce new ETF products...

  • Page 23
    ...and cumulative effect of accounting change. 1999 1998 *Excludes gain on sale of business. SECURITIES Morgan Stanley provides investment banking services to corporations, governments and other entities and provides sales, trading and research services to institutional and individual investors, all...

  • Page 24
    ... 4 million merchant and cash access locations. Discover Card offers various products and financial services, including Discover Platinum and Discover Gold cards, affinity cards, CD and money market accounts, installment loans, home mortgages and credit insurance coverage. Today, 24 percent of our...

  • Page 25
    ... PHILIP J. PURCELL Chairman & Chief Executive Officer JOHN H. SCHAEFER ROBERT G. SCOTT President & Chief Operating Officer TAREK F. ABDEL-MEGUID Investment Banking Division Individual Investor Group Institutional Securities OTHER OFFICERS STEPHEN S. CRAWFORD Chief Financial Officer ZOE CRUZ Fixed...

  • Page 26
    ... of the company's Annual Report on Form 10-K and other filings can be obtained online at: www.morganstanley.com or by calling 1-800-622-2393. CUSTOMER SERVICE PHONE NUMBERS STOCK TRANSFER AGENT For information about the direct stock purchase and dividend reinvestment program (DRIP), address changes...

  • Page 27
    ... HONG KONG 30th Floor Three Exchange Square Central, Hong Kong Phone (852) 2848-5200 Fax (852) 2845-1012 JOHANNESBURG 1st Floor S.W. Wing 160 Jan Smuts Avenue Rosebank, 2196 South Africa Phone (27 11) 507-0800 Fax (27 11) 507-0801 LONDON 25 Cabot Square, Canary Wharf London E14 4QA England Phone...

  • Page 28
    DESIGN: SEQUEL STUDIO, NEW YORK PRINCIPAL PHOTOGRAPHY: BILL GALLERY, DOUG MENUEZ

  • Page 29
    MORGAN STANLEY 1 5 8 5 BROADWAY NEW YORK, NY 1 0 0 3 6 -8 2 9 3 2 1 2 -7 6 1 -4 0 0 0 morganstanley.com