Morgan Stanley 2003 Annual Report Download - page 9
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Please find page 9 of the 2003 Morgan Stanley annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.32003financialresults
Ourconsolidatednancialperformancefortheyearwasstrong.Revenues
wereup9%,therstincreaseinrevenuessince2000.Whilehigher
revenuesreected,inpart,abetterenvironment,Ibelieveourfocuson
improvingourmarketsharewithclientsalsocontributedtothestronger
performance.Protsbeforetaxwereup22%asaresultofourfocuson
costsinadditiontothegrowthinrevenues.Netincomeincreased27%,
andearningspershareincreased28%.
Lookingbehindconsolidatedresultstotheparticularbusinesses,
InstitutionalSecuritiesdrovetheincreaseinprotsforthermasawhole.
Inparticular,xedincomehadarecordyearwithrevenuesup65%,40%
higherthanthepriorrecordyearof2001.Resultsinourequityandinvest-
mentbankingbusinesseswererelativelyunchangedfromtheprioryear,
withrevenuesup2%anddown4%,respectively.
TheIndividualInvestorGroupalsohadsignicantlybetternancial
resultsin2003.Whilerevenueswererelativelyat(down2%),prots
beforetaxwereup317%.Overthelastthreeyears,wehavereorganized
andimprovedeveryaspectofthebusiness,includinghowwetrainour
advisors,deneourcustomersegments,reportournancialresultsand
rewardournancialadvisors.Webelievewehavesetthefoundationfor
growthinabusinessthathassignicantseculargrowthopportunitiesgiven
thedemographicsinourcountry.
TheperformanceinDiscover®andInvestmentManagementwasnotup
toourexpectationsin2003.StartingwithDiscover,wehaveemphasizedfor
thelastseveralyearsourkeypriority:improvingcreditquality.Whilethere
weremorepositivesignstowardtheendoftheyear,Discover’scharge-offs
wereupfrom6.19%onamanagedbasisin2002to6.60%in2003.A
strongfocusoncostsmitigatedmuchofthisincrease,resultinginadecline
inrevenuesandprotsbeforetaxesof7%from2002’srecordlevels.
Withcompetitorspursuinggrowthatwhatwebelievetobesub-par
economicreturns,ouraverageoutstandingmanagedbalancesgrewby
only2%thisyear.Whilewebelieveanimprovedeconomicoutlookand
signicantchangesincreditriskmanagementwillcontributetolower
lossesinthecomingquarters,thecompetitiveenvironmentismuchmore
MorganStanleyAnnualReport2003