Morgan Stanley 2005 Annual Report Download

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One Priority: Performance
Morgan Stanley Annual Report 2005

Table of contents

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    One Priority: Performance Morgan Stanley Annual Report 2005

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    ... common stock began trading on the New York Stock Exchange under the symbol "MS." The change aligns our ticker with the Morgan Stanley name and reï¬,ects the actions we're taking to move forward as "one firm" and realize the full potential of our global franchise. CONTENTS Letter to Shareholders...

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    Today, the power of the Morgan Stanley franchise has never been stronger. We have remarkably talented people. We have unmatched client relationships. We have a clear blueprint for building and further improving upon our global business performance. And we are more determined and better equipped than...

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    We are masters of complexity

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    and engineers of creative solutions.

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    We are trusted advisors

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    and powerful distribution muscle.

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    We are experienced risk managers

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    and over $600 billion in client assets.

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    One Priority: Performance

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    ... to our clients' most complex problems. We boast a superb investment banking franchise, preeminence in key businesses such as prime brokerage and commodities, and leading positions in high-growth emerging markets. Our Retail Brokerage business holds more than $600 billion in client assets, and our...

  • Page 12
    ... new opportunities for organic growth and, when appropriate, acquisitions that will help grow the scope and scale of our key businesses. We will tear down any barriers that impede our ability to work as one team across Morgan Stanley and create a cohesive "one firm" culture where every employee...

  • Page 13
    ...591 $ 5,462 $ 5,567 $ 6,782 03 04 05 03 04 05 All charts are based on fiscal year results of operations for the 12 months ended November 30. (1) Amounts include interest rate and currency products, credit products and commodities. Amounts exclude revenues from corporate lending activities.

  • Page 14
    Retail Brokerage Total Client Assets Dollars in Billions Retail Brokerage Bank Deposit Program Dollars in Millions $ 1,689 $ 565 $ 602 $ 617 $ 469 $ 435 03 04 05 03 04 05 Discover Payment Services Network Volume Transactions in Millions Discover Net Sales Dollars in Billions 2,857 $ 86...

  • Page 15
    LET TER TO SHAREHOLDERS in countries like Russia, China, India, Turkey, Brazil, South Korea, Mexico and in the Middle East. We plan to capitalize on this potential by marshaling our current strengths, improving cooperation across divisions and adding resources to these areas. For example, we ...

  • Page 16
    ... four new, non-employee directors: Roy Bostock, Erskine Bowles, Charles Noski and Griff Sexton. We appreciate the dedicated service of all the directors who stepped down this past year and thank them for their commitment and many contributions to the firm. This year truly tested Morgan Stanley, but...

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    Morgan Stanley Answers Your Questions

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    ... the firm grow that business ahead of the credit card industry's slower pace? Answer: Discover is an attractive asset for Morgan Stanley. It is a unique and successful franchise that diversifies the company's earnings and broadens our scale and capital base. The income before taxes generated by...

  • Page 20
    ... its full potential. We need to expand our product offerings, bringing new and creative products to our retail client base through our retail sales force. We also need to continue to build our high-net-worth and ultra-highnet-worth business, which is a key target for growth and investment. And we...

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    ... and Asset Management businesses. The progress we have made in new product development is helping to energize our broker sales force and will help us create a best-in-class platform with best-in-class products. Q8. You've talked about some of Morgan Stanley's misses in strategy and execution. Why...

  • Page 24
    ...important part of Morgan Stanley's business, and we want to focus on those markets we believe will yield the greatest returns, such as Russia, China, India, Turkey, Brazil, South Korea, Mexico and the Middle East. Strong regional managers for those businesses are working across offices and functions...

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    ... their full potential. Q14. Morgan Stanley faced a tough year in 2005. How did that impact the firm's performance? Q15. The firm's new senior management team has talked a lot about the culture at Morgan Stanley. What kind of culture are you trying to build among the people of Morgan Stanley? 25

  • Page 28
    ...managed accounts, banking, mortgages, insurance and annuities. Morgan Stanley offers financial solutions to small businesses through BusinesScape and provides defined contribution plan services, including 401(k) plans and stock plan administration, to businesses of all sizes. Client Support Client...

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    ... Network, the largest proprietary credit card network in the U.S., with more than 4 million merchant and cash access locations. Discover also offers Discover Gift Cards and a variety of financial services, including home loans and credit protection products, and is a leading credit card company...

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    ... for a Drug-Free America Erskine B. Bowles President The University of North Carolina Howard J. Davies Director London School of Economics and Political Science C. Robert Kidder Principal Stonehenge Partners, Inc. Charles H. Noski Former Vice Chairman of the Board AT&T Corporation O. Griffith Sexton...

  • Page 31
    ... to making a positive difference to our neighbors worldwide. To learn more about our philanthropic programs, access the company's Charitable Annual Report through our website at www.morganstanley.com or write to: Morgan Stanley Community Affairs, 1633 Broadway, 20th Floor, New York, NY 10019. 29

  • Page 32
    ... accounting change, net Earnings per diluted share Book value per common share Dividends per common share Balance Sheet and Other Operating Data: Total assets Consumer loans, net Total capital 3 Long-term borrowings 3 Shareholders' equity Return on average common shareholders' equity Average common...

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    ...AT I O N S Worldwide Headquarters - New York 1585 Broadway New York, NY 10036 Phone (212) 761-4000 Amsterdam Rembrandt Tower, 11th Floor Amstelplein 1 1096 HA Amsterdam The Netherlands Phone (31 20) 462-1300 Fax (31 20) 462-1310 Athens 18 Valoritou Street Athens 10671 Greece Phone (30 210) 364-0468...

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    ... Two World Financial Center New York, NY 10281 (212) 436-2000 Stock Transfer Agent For information about the direct stock purchase and dividend reinvestment program (DRIP), address changes, dividend checks, lost stock certificates, share ownership and other administrative services, contact: Mellon...

  • Page 35
    ...results, please refer to our Annual Report on Form 10-K and visit us online at www.morganstanley.com. Design: Cahan & Associates, San Francisco, CA Photography: Bill Gallery M O R G A N S TA N L E Y 1585 Broadway New York, NY 10036-8293 (212) 761-4000 www.morganstanley.com © 2006 Morgan Stanley

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