Results of Operations
Merrill Lynch reported record net earnings of $3.8 billion for 2000, or $4.11 per diluted share, with a return on average common stockholders’ equity of 24.2% and a pre-tax profit margin of 21.3%. These results represent a 41% increase in net earnings and a 20% increase in net revenues from 1999 and reflect record net revenues in every category and region. Net earnings in 1999 were $2.7 billion, or $3.11 per diluted share. Return on average common stockholders’ equity for 1999 was 23.8% and the pre-tax profit margin was 18.8%. In 1998, Merrill Lynch reported net earnings of $1.3 billion, or $1.49 per diluted share, which included a $288 million after-tax provision for costs related to staff reductions. Excluding the staff reduction provision, 1998 net earnings were $1.6 billion, or $1.83 per diluted share. On the same basis, return on average common stockholders’ equity was 16.3% and the pre-tax profit margin was 14.3% in 1998.
The following charts illustrate the change in the composition of net revenues by category from 1996 to 2000.
The following discussion provides details of operating performance for each of Merrill Lynch’s business segments, as well as details of products and services offered. The discussion also includes details of net revenues by segment. Certain prior year amounts have been restated to conform with the current year presentation. For further information, see Note 2 to the Consolidated Financial Statements.
