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Part II

 

Item 5.    Market for Registrant’s Common Equity and Related Stockholder Matters. Morgan Stanley’s common stock trades on the NYSE and The Pacific Exchange. Morgan Stanley had approximately 141,000 holders of record at November 29, 2002; however, Morgan Stanley believes the number of beneficial owners of common stock exceeds this number.

 

Set forth below, for each of the last eight fiscal quarters, is the low and high sales prices per share of Morgan Stanley’s common stock as reported by Bloomberg Financial Markets and the amount of any cash dividends declared per share of Morgan Stanley’s common stock.

 

    

Low Sale Price

   

High Sale Price

   

Dividends

Fiscal 2002:

                     

Fourth Quarter

   

$

28.80

   

$

46.83

   

$

0.23

Third Quarter

   

$

33.50

   

$

46.50

   

$

0.23

Second Quarter

   

$

43.92

   

$

58.27

   

$

0.23

First Quarter

   

$

45.90

   

$

60.02

   

$

0.23

Fiscal 2001:

                     

Fourth Quarter

   

$

35.75

   

$

59.60

   

$

0.23

Third Quarter

   

$

50.10

   

$

66.40

   

$

0.23

Second Quarter

   

$

44.10

   

$

75.23

   

$

0.23

First Quarter

   

$

61.63

   

$

90.49

   

$

0.23

 

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Table of Contents

Item 6.    Selected Financial Data.

 

MORGAN STANLEY

SELECTED FINANCIAL DATA

(dollars in millions, except share and per share data)

 

   

Fiscal Year(1)

  
   

2002

     

2001

     

2000

   

1999

   

1998

  

Income Statement Data:

                                        

Revenues:

                                        

Investment banking

  

$

2,527

 

   

$

3,425

 

   

$

5,008

   

$

4,523

   

$

3,339

 

Principal transactions:

                                        

Trading

  

 

2,685

 

   

 

5,491

 

   

 

7,361

   

 

5,796

   

 

3,159

 

Investments

  

 

(35

)

   

 

(316

)

   

 

193

   

 

725

   

 

89

 

Commissions

  

 

3,280

 

   

 

3,162

 

   

 

3,647

   

 

2,774

   

 

2,208

 

Fees:

                                        

Asset management, distribution and administration

  

 

3,945

 

   

 

4,216

 

   

 

4,405

   

 

3,462

   

 

3,111

 

Merchant and cardmember

  

 

1,420

 

   

 

1,349

 

   

 

1,256

   

 

1,030

   

 

1,244

 

Servicing

  

 

2,091

 

   

 

1,904

 

   

 

1,489

   

 

1,232

   

 

936

 

Interest and dividends

  

 

15,866

 

   

 

24,127

 

   

 

21,234

   

 

14,880

   

 

16,385

 

Other

  

 

636

 

   

 

516

 

   

 

513

   

 

250

   

 

268

 

   
  
  
  
  

Total revenues

  

 

32,415

 

   

 

43,874

 

   

 

45,106

   

 

34,672

   

 

30,739

 

Interest expense

  

 

11,970

 

   

 

20,729

 

   

 

18,148

   

 

12,487

   

 

13,443

 

Provision for consumer loan losses

  

 

1,336

 

   

 

1,052

 

   

 

810

   

 

526

   

 

1,174

 

   
  
  
  
  

Net revenues

  

 

19,109

 

   

 

22,093

 

   

 

26,148

   

 

21,659

   

 

16,122

 

   
  
  
  
  

Non-interest expenses:

                                        

Compensation and benefits

  

 

7,933

 

   

 

9,372

 

   

 

10,896

   

 

8,361

   

 

6,609

 

Other

  

 

6,221

 

   

 

6,987

 

   

 

6,733

   

 

5,542

   

 

4,793

 

Restructuring and other charges

  

 

235

 

   

 

—  

 

   

 

—  

   

 

—  

   

 

—  

 

   
  
  
  
  

Total non-interest expenses

  

 

14,389

 

   

 

16,359

 

   

 

17,629

   

 

13,903

   

 

11,402

 

   
  
  
  
  

Gain on sale of businesses

  

 

—  

 

   

 

—  

 

   

 

35

   

 

—  

   

 

685

 

   
  
  
  
  

Income before income taxes, dividends on preferred securities subject to mandatory redemption, extraordinary item and cumulative effect of accounting change

  

 

4,720

 

   

 

5,734

 

   

 

8,554

   

 

7,756

   

 

5,405

 

Provision for income taxes

  

 

1,645

 

   

 

2,074

 

   

 

3,070

   

 

2,937

   

 

1,992

 

Dividends on preferred securities subject to mandatory redemption

  

 

87

 

   

 

50

 

   

 

28

   

 

28

   

 

20

 

   
  
  
  
  

Income before extraordinary item and cumulative effect of accounting change

  

 

2,988

 

   

 

3,610

 

   

 

5,456

   

 

4,791

   

 

3,393

 

Extraordinary item

  

 

—  

 

   

 

(30

)

   

 

—  

   

 

—  

   

 

—  

 

Cumulative effect of accounting change

  

 

—  

 

   

 

(59

)

   

 

—  

   

 

—  

   

 

(117

)

   
  
  
  
  

Net income

  

$

2,988

 

   

$

3,521

 

   

$

5,456

   

$

4,791

   

$

3,276

 

   
  
  
  
  

Earnings applicable to common shares(2)

  

$

2,988

 

   

$

3,489

 

   

$

5,420

   

$

4,747

   

$

3,221

 

   
  
  
  
  

Per Share Data:

                                        

Earnings per common share:

                                        

Basic before extraordinary item and cumulative effect of accounting change

  

$

2.76

 

   

$

3.29

 

   

$

4.95

   

$

4.33

   

$

2.90

 

Extraordinary item

  

 

—  

 

   

 

(0.03

)

   

 

—  

   

 

—  

   

 

—  

 

Cumulative effect of accounting change

  

 

—  

 

   

 

(0.05

)

   

 

—  

   

 

—  

   

 

(0.10

)

   
  
  
  
  

Basic

  

$

2.76

 

   

$

3.21

 

   

$

4.95

   

$

4.33

   

$

2.80

 

   
  
  
  
  

Diluted before extraordinary item and cumulative effect of accounting change

  

$

2.69

 

   

$

3.19

 

   

$

4.73

   

$

4.10

   

$

2.76

 

Extraordinary item

  

 

—  

 

   

 

(0.03

)

   

 

—  

   

 

—  

   

 

—  

 

Cumulative effect of accounting change

  

 

—  

 

   

 

(0.05

)

   

 

—  

   

 

—  

   

 

(0.09

)

   
  
  
  
  

Diluted

  

$

2.69

 

   

$

3.11

 

   

$

4.73

   

$

4.10

   

$

2.67

 

   
  
  
  
  

 

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Fiscal Year(1)

  
    

2002

     

2001

     

2000

     

1999

     

1998

  

Book value per common share

   

$    20.24

 

   

$    18.64

 

   

$    16.91

 

   

$    14.85

 

   

$    11.94

 

Dividends per common share

   

$      0.92

 

   

$      0.92

 

   

$      0.80

 

   

$      0.48

 

   

$      0.40

 

Balance Sheet and Other Operating Data:

                                   

Total assets

   

$529,499

 

   

$482,628

 

   

$421,279

 

   

$366,967

 

   

$317,590

 

Consumer loans, net

   

23,404

 

   

20,108

 

   

21,743

 

   

20,963

 

   

16,412

 

Total capital(3)

   

65,936

 

   

61,633

 

   

49,637

 

   

39,699

 

   

37,922

 

Long-term borrowings(3)

   

44,051

 

   

40,917

 

   

30,366

 

   

22,685

 

   

23,803

 

Shareholders’ equity

   

21,885

 

   

20,716

 

   

19,271

 

   

17,014

 

   

14,119

 

Return on average common shareholders’ equity

   

14.1

%

   

18.5

%

   

30.9

%

   

32.6

%

   

24.5

%

Average common and equivalent shares(2)

   

1,083,270,783

 

   

1,086,121,508

 

   

1,095,858,438

 

   

1,096,789,720

 

   

1,151,645,450

 

(1) Certain prior-period information has been reclassified to conform to the current year’s presentation.
(2) Amounts shown are used to calculate basic earnings per common share.
(3) These amounts exclude the current portion of long-term borrowings and include Capital Units and Preferred Securities Subject to Mandatory Redemption.

 

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