Morgan Stanley 2014 Annual Report Download - page 73

Supplemental Financial Information.
Investment Banking. Investment banking revenues are composed of fees from advisory services and revenues
from the underwriting of securities offerings and syndication of loans, net of syndication expenses.
Investment banking revenues were as follows:
2014 2013 2012
(dollars in millions)
Advisory revenues ..................................................... $1,634 $1,310 $1,369
Underwriting revenues:
Equity underwriting revenues ........................................ 1,613 1,262 892
Fixed income underwriting revenues ................................... 1,956 1,805 1,669
Total underwriting revenues .............................................. 3,569 3,067 2,561
Total investment banking revenues ........................................ $5,203 $4,377 $3,930
The following table presents the Company’s volumes of announced and completed mergers and acquisitions,
equity and equity-related offerings, and fixed income offerings:
2014(1) 2013(1) 2012(1)
(dollars in billions)
Announced mergers and acquisitions(2) ...................................... $745 $518 $464
Completed mergers and acquisitions(2) ...................................... 620 526 391
Equity and equity-related offerings(3) ....................................... 72 61 52
Fixed income offerings(4) ................................................ 260 289 277
(1) Source: Thomson Reuters, data at January 20, 2015. Announced and completed mergers and acquisitions volumes are based on full
credit to each of the advisors in a transaction. Equity and equity-related offerings and fixed income offerings are based on full credit for
single book managers and equal credit for joint book managers. Transaction volumes may not be indicative of net revenues in a given
period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal
or change in the value of a transaction.
(2) Amounts include transactions of $100 million or more. Announced mergers and acquisitions exclude terminated transactions.
(3) Amounts include Rule 144A and public common stock, convertible and rights offerings.
(4) Amounts include non-convertible preferred stock, mortgage-backed and asset-backed securities and taxable municipal debt. Amounts
also include publicly registered and Rule 144A issues. Amounts exclude leveraged loans and self-led issuances.
Sales and Trading Net Revenues. Sales and trading net revenues are composed of Trading revenues;
Commissions and fees; Asset management, distribution and administration fees; and Net interest income
(expenses). See “Business Segments—Net Revenues” herein for information about the composition of the above-
referenced components of sales and trading revenues. In assessing the profitability of its sales and trading
activities, the Company views these net revenues in the aggregate. In addition, decisions relating to trading are
based on an overall review of aggregate revenues and costs associated with each transaction or series of
transactions. This review includes, among other things, an assessment of the potential gain or loss associated
with a transaction, including any associated commissions and fees, dividends, the interest income or expense
associated with financing or hedging the Company’s positions, and other related expenses. See Note 12 to the
Company’s consolidated financial statements in Item 8 for further information related to gains (losses) on
derivative instruments.
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