Morgan Stanley 2010 Annual Report Download - page 62

INSTITUTIONAL SECURITIES
INCOME STATEMENT INFORMATION
2010 2009
Fiscal
2008
One Month
Ended
December 31,
2008
(dollars in millions)
Revenues:
Investment banking .................................. $ 4,295 $ 4,455 $ 3,630 $ 177
Principal transactions:
Trading ........................................ 8,154 6,591 5,897 (1,462)
Investments .................................... 809 (864) (2,461) (158)
Commissions ....................................... 2,274 2,152 3,094 127
Asset management, distribution and administration fees ..... 104 98 142 10
Other ............................................. 996 545 2,722 91
Total non-interest revenues .................... 16,632 12,977 13,024 (1,215)
Interest income ..................................... 5,877 6,373 37,604 1,017
Interest expense ..................................... 6,143 6,497 35,860 1,124
Net interest ..................................... (266) (124) 1,744 (107)
Net revenues ............................... 16,366 12,853 14,768 (1,322)
Compensation and benefits ................................ 7,081 7,212 7,084 280
Non-compensation expenses ............................... 4,947 4,553 6,144 395
Total non-interest expenses .................... 12,028 11,765 13,228 675
Income (loss) from continuing operations before income taxes .... 4,338 1,088 1,540 (1,997)
Provision for (benefit from) income taxes ..................... 301 (301) 149 (726)
Income (loss) from continuing operations ..................... 4,037 1,389 1,391 (1,271)
Discontinued operations:
Gain (loss) from discontinued operations ................. (1,175) 396 1,460 (20)
Provision for (benefit from) income taxes ................. 26 229 575 (1)
Net gain (loss) on discontinued operations ........ (1,201) 167 885 (19)
Net income (loss) ........................................ 2,836 1,556 2,276 (1,290)
Net income applicable to noncontrolling interests .......... 290 12 71 3
Net income (loss) applicable to Morgan Stanley ............... $ 2,546 $ 1,544 $ 2,205 $(1,293)
Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations ................. $ 3,747 $ 1,393 $ 1,358 $(1,271)
Net gain (loss) from discontinued operations .............. (1,201) 151 847 (22)
Net income (loss) applicable to Morgan Stanley . . . $ 2,546 $ 1,544 $ 2,205 $(1,293)
In the third quarter of 2010, the Company completed the disposal of CityMortgage Bank (“CMB”), a Moscow-
based mortgage bank. Results for CMB are reported as discontinued operations for all periods presented through
the date of disposal within the Institutional Securities business segment.
On March 31, 2010, the Board authorized a plan of disposal by sale for Revel. The results of Revel are reported
as discontinued operations for all periods presented within the Institutional Securities business segment. Results
for 2010 include a loss of approximately $1.2 billion in connection with writedowns and related costs of such
planned disposition.
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