Morgan Stanley 2010 Annual Report Download - page 70

GLOBAL WEALTH MANAGEMENT GROUP
INCOME STATEMENT INFORMATION
2010 2009
Fiscal
2008
One Month
Ended
December 31,
2008
(dollars in millions)
Revenues:
Investment banking .................................... $ 827 $ 596 $ 427 $ 21
Principal transactions:
Trading .......................................... 1,306 1,208 613 54
Investments ...................................... 19 3 (54) (4)
Commissions ......................................... 2,676 2,090 1,408 89
Asset management, distribution and administration fees ....... 6,349 4,583 2,726 183
Other ............................................... 337 249 965 15
Total non-interest revenues ...................... 11,514 8,729 6,085 358
Interest income ....................................... 1,587 1,114 1,239 66
Interest expense ....................................... 465 453 305 15
Net interest ....................................... 1,122 661 934 51
Net revenues ................................. 12,636 9,390 7,019 409
Compensation and benefits .................................. 7,843 6,114 3,810 247
Non-compensation expenses ................................. 3,637 2,717 2,055 44
Total non-interest expenses ...................... 11,480 8,831 5,865 291
Income from continuing operations before income taxes ........... 1,156 559 1,154 118
Provision for income taxes .................................. 336 178 440 45
Income from continuing operations ............................ 820 381 714 73
Net income ............................................... 820 381 714 73
Net income applicable to noncontrolling interests .... 301 98 — —
Net income applicable to Morgan Stanley ...................... $ 519 $ 283 $ 714 $ 73
On May 31, 2009, MSSB was formed (see Note 3). The Company owns 51% of MSSB, which is consolidated.
As a result, the operating results for MSSB are included in the Global Wealth Management Group business
segment since May 31, 2009. Net income applicable to noncontrolling interests of $301 million and $98 million
in 2010 and 2009, respectively, primarily represents Citi’s interest in MSSB since May 31, 2009.
2010 Compared with 2009.
Investment Banking. Global Wealth Management Group investment banking includes revenues from the
distribution of equity and fixed income securities, including initial public offerings, secondary offerings,
closed-end funds and unit trusts. Investment banking revenues increased 39% in 2010, primarily benefiting from
a full year of MSSB revenues and higher closed-end fund activity.
Principal Transactions—Trading. Principal transactions—Trading include revenues from customers’
purchases and sales of financial instruments in which the Company acts as principal and gains and losses on the
Company’s inventory positions which are held primarily to facilitate customer transactions.
Principal transactions trading revenues increased 8% in 2010, primarily benefiting from a full year of MSSB
revenues, net gains related to investments associated with certain employee deferred compensation plans and
gains on certain investments.
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