Morgan Stanley 2009 Annual Report Download - page 43

Statistical Data (Continued). 2009(1)
Fiscal
Year
2008(2)
Fiscal
Year
2007(2)
One Month
Ended
December 31,
2008(2)
Institutional Securities:
Pre-tax profit margin(20) .................................. 8% 10% 4% N/M
Global Wealth Management Group:
Global representatives(21) ................................. 18,135 8,426 8,429 8,356
Annualized net revenue per global representative (dollars in
thousands)(22) ........................................ $ 666 $ 746 $ 811 $ 585
Assets by client segment (dollars in billions):
$10 million or more .................................. $ 453 $ 152 $ 247 $ 155
$1 million to $10 million .............................. 637 197 275 196
Subtotal $1 million or more ........................ 1,090 349 522 351
$100,000 to $1 million ................................ 418 151 179 155
Less than $100,000 .................................. 52 22 23 22
Corporate and other accounts(23) ....................... — 24 34 22
Total client assets ................................ $ 1,560 $ 546 $ 758 $ 550
Fee-based assets as a percentage of total client assets ............ 24% 25% 27% 25%
Client assets per global representative (dollars in millions)(24) .... $ 86 $ 65 $ 90 $ 66
Bank deposits (dollars in billions)(25) ........................ $ 112.5 $ 36.4 $ 26.2 $ 38.8
Pre-tax profit margin(20) .................................. 6% 16% 17% 29%
Asset Management(15):
Assets under management or supervision (dollars in
billions)(19) .......................................... $ 266 $ 287 $ 400 $ 290
Percent of fund assets in top half of Lipper rankings(26) ......... 55% 39% 49% 55%
Pre-tax profit margin(20) .................................. N/M N/M 24% N/M
N/M– Not Meaningful.
N/A – Not Applicable.
(1) Information includes MSSB effective from May 31, 2009 (see Note 3 to the consolidated financial statements).
(2) Certain prior-period information has been reclassified to conform to the current period’s presentation.
(3) Amounts include operating results and gains on secondary offerings related to MSCI, operating results and gains (losses) related to the
disposition of Crescent, operating results of Retail Asset Management and other discontinued operations.
(4) For the calculation of basic and diluted EPS, see Note 14 to the consolidated financial statements.
(5) Regional net revenues in Europe, Middle East and Africa were negatively impacted by the tightening of the Company’s credit spreads
resulting from the increase in fair value of certain of the Company’s long-term and short-term borrowings, primarily structured notes, in
2009. Regional net revenues reflect the regional view of the Company’s consolidated net revenues, on a managed basis, based on the
following methodology:
Institutional Securities: advisory and equity underwriting—client location; debt underwriting—revenue recording location; sales and
trading—trading desk location. Global Wealth Management Group: global representative location. Asset Management: client location,
except for the merchant banking business, which is based on asset location.
(6) The computation of average common equity for each business segment is based upon an economic capital framework that estimates the
amount of equity capital required to support the businesses over a wide range of market environments while simultaneously satisfying
regulatory, rating agency and investor requirements. Economic capital is assigned to each business segment based on a regulatory capital
framework plus additional capital for stress losses. Economic capital requirements are met by regulatory Tier 1 equity (including Morgan
Stanley shareholders’ equity, certain preferred stock, eligible hybrid capital instruments, non-controlling interests and deductions of
certain goodwill, intangible assets, net deferred tax assets and debt valuation adjustment (“DVA”)), subject to regulatory limits. The
economic capital framework will evolve over time in response to changes in the business and regulatory environment and to incorporate
enhancements in modeling techniques. The effective tax rates used in the computation of business segment return on average common
equity were determined on a separate entity basis.
(7) Book value per common share equals common shareholders’ equity of $37,091 million as of December 31, 2009, $31,676 million as of
November 30, 2008, $30,169 million as of November 30, 2007 and $29,585 million as of December 31, 2008, divided by common
shares outstanding of 1,361 million as of December 31, 2009, 1,048 million as of November 30, 2008, 1,056 million as of November 30,
2007 and 1,074 million as of December 31, 2008.
(8) Tangible common equity equals common shareholders’ equity less goodwill and intangible assets net of allowable mortgage servicing
rights. The deduction for goodwill and intangible assets in 2009 includes only the Company’s share of MSSB’s goodwill and intangible
assets.
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