<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 26, 1998
Morgan Stanley Dean Witter & Co.
-------------------------------------------
(Exact name of Registrant as specified
in its charter)
Delaware 1-11758 36-3145972
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(state or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
1585 Broadway, New York, New York 10036
------------------------------------------------
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (212) 761-4000
--------------
-------------------------------------------------------------------------
(Former address, if changed since last report.)
<PAGE>
Item 5. Other Events
- ---------------------
On March 26, 1998, Morgan Stanley Dean Witter & Co. (the "Registrant")
released financial information with respect to the quarter ended February 28,
1998. A copy of the press release containing such financial information is
annexed as Exhibit 99.1 to this Report and by this reference incorporated herein
and made a part hereof.
Attached and incorporated herein by reference as Exhibit 99.2 is a press
release announcing that, effective at the close of business on March 24, 1998,
Morgan Stanley, Dean Witter, Discover & Co. (the "Company") changed its name to
Morgan Stanley Dean Witter & Co., as approved by the Company's stockholders at
the Company's Annual Meeting of Stockholders on March 24, 1998.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
- --------------------------------------------------------------------------
99.1 Press release of the Registrant dated March 26, 1998
containing financial information for the first quarter
ended February 28, 1998.
99.2 Press release of the Registrant dated March 24, 1998
announcing that the Company's name will be changed to
Morgan Stanley Dean Witter & Co.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereto duly authorized.
MORGAN STANLEY DEAN WITTER & CO.
-------------------------------------------
(Registrant)
By: /s/ Ronald T. Carman
-------------------------------------------
Ronald T. Carman
Assistant Secretary
Dated: March 26, 1998
<PAGE>
Exhibit Index
-------------
Exhibit No. Description Page
- ------------- ----------- ----
99.1 Press release of the Registrant dated
March 26, 1998 containing financial
information for the first quarter
ended February 28, 1998.
99.2 Press release of the Registrant dated
March 24, 1998 announcing that the
Company's name will be changed to
Morgan Stanley Dean Witter & Co.
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
MORGAN STANLEY DEAN WITTER & CO.
EXHIBITS
TO CURRENT REPORT ON
FORM 8-K DATED MARCH 26, 1998
Commission File Number 1-11758
<PAGE>
EXHIBIT 99.1
Contact: Investor Relations Media Relations
------------------- ---------------
JOHN ANDREWS JEANMARIE MCFADDEN
212-762-8131 212-762-7842
TIMOTHY LEE
212-392- 8709
MORGAN STANLEY DEAN WITTER
FIRST QUARTER NET INCOME UP 21% TO $691 MILLION
NEW YORK, March 26, 1998 -- Morgan Stanley Dean Witter & Co. (NYSE: MWD) today
reported net income of $691 million for the first fiscal quarter ended February
28, 1998 -- a 21 percent increase from last year's first quarter $571 million.
Diluted earnings per share were $1.10 -- 21 percent ahead of the $.91 in last
year's first quarter.
Net revenues (total revenues less interest expense and the provision for loan
losses) were $4,035 million for the quarter -- up 16 percent from last year's
first quarter of $3,474 million. The annualized return on average common equity
for the first fiscal quarter was 20.1 percent.
Philip J. Purcell, Chairman, and John J. Mack, President, said in a joint
statement, "We continued to do very well -- particularly in our securities
business. It has been just over a year since we announced the merger, and we
have clearly created a powerful engine for growth. Our securities and asset
management businesses were firing on all cylinders."
<PAGE>
SECURITIES
The Company's Securities business posted $472 million in net income, a 31
percent increase from the first quarter of last year.
. Results in institutional securities were particularly strong in North America
and Europe, while the Asian market environment remained uncertain.
. An outstanding quarter for investment banking was driven by record revenues
from mergers and acquisitions coupled with strong increases in debt and
equity underwriting and real estate advisory activities. For the first two
months of calendar 1998, the Company maintained a leadership position in
announced M&A transactions as well as in equity, high yield and investment
grade debt underwritings.*
. Institutional sales and trading reported strong results, achieving a record
quarter in equities and solid performances in fixed income derivative
products, foreign exchange and commodities.
. Individual securities reported strong first quarter sales of mutual funds and
proprietary unit trusts, and record sales of Investment Consulting Services.
. Dean Witter account executives increased by 237 for the quarter and by 1,047
over the last twelve months to 10,183. Dean Witter's total client assets rose
by $23 billion for the quarter and $64 billion from a year ago to a record
$325 billion.
ASSET MANAGEMENT
Asset Management's net income for the quarter was $120 million, 40 percent ahead
of a year ago. The quarter's increase reflected continued growth in assets under
management and strong results in merchant banking.
- ------------------------------
* Source: Securities Data Corp. Jan. 1 to Feb. 28, 1998
<PAGE>
. The Company had $356 billion of assets under management and supervision at
the end of the first quarter, an increase of $66 billion, or 23 percent, over
the year earlier period.
. Institutional assets, managed primarily by Morgan Stanley Asset Management
and Miller Anderson & Sherrerd, rose to $155 billion -- an increase of $10
billion for the quarter and $33 billion over the last twelve months.
. Retail assets, managed primarily by InterCapital and Van Kampen American
Capital, increased $8 billion for the quarter and $33 billion from a year
ago -- to stand at $201 billion.
. In January, a mutual fund composed primarily of stocks from the Morgan
Stanley Dean Witter research team's Competitive Edge "Best Ideas" list was
launched and distributed solely through the Dean Witter branch system. The
Company believes the initial offering, with sales of more than $1.3 billion,
was a record for a mutual fund.
. Merchant banking recorded first quarter investment gains of $59 million,
primarily due to the sale of its remaining position in Fort James
Corporation.
CREDIT AND TRANSACTION SERVICES
Credit and Transaction Services first quarter net income was $99 million, down
21 percent from last year. The decline reflects an increase in the provision for
loan losses which more than offset a modest increase in revenues and lower
operating expenses.
. On a managed loan basis, net interest income of $835 million rose 5 percent
from the first quarter of 1997, while non-interest revenues, primarily
merchant and cardmember fees, of $543 million declined 1 percent from the
same period.
. Managed loans of $35.8 billion were up $1.8 billion, or 5 percent, from the
first quarter of 1997.
. The consumer loan net charge-off rate increased to 7.50 percent in the first
quarter of 1998 from 6.91 percent a year ago.
<PAGE>
The Company is entering into agreements to sell its Prime Option MasterCard
portfolio. The sale, which is expected to close in the second quarter, will not
have a material impact on net income in the quarter. In addition, after two
years of regional marketing in 23 states, the Company is discontinuing the BRAVO
Card and plans to consolidate the card's portfolio with Private Issue and
Discover Card. The Company believes that these steps will have a positive
effect on Credit and Transaction Services' operating results going forward. The
Company's strategy will be to continue to focus on its highly successful
Discover brand.
Finally, Discover Brokerage Direct, the Company's on-line broker, experienced
strong growth from a year ago in both its account base and transaction volume.
In February, it was named the top-rated "Overall On-line Broker" by Smart Money
magazine and, in March, it received Barron's highest overall rating -- for the
third consecutive year -- for any on-line broker.
Since the Company's February 12, 1998 announcement of its $3 billion stock
repurchase authorization, it has repurchased approximately 5.2 million shares of
its common stock.
The Company also announced that its Board of Directors declared a regular
quarterly dividend of $.20 per common share. The dividend is payable on April
30, 1998 to common shareholders of record as of April 15, 1998.
Total capital (stockholders' equity and long-term debt) at February 28, 1998 was
$33.5 billion, including $14.5 billion of common and preferred stockholders'
equity. Book value per common share was $22.67, based on quarter-end shares
outstanding of 605,005,581.
<PAGE>
Morgan Stanley Dean Witter & Co. is a global financial services firm and a
market leader in securities, asset management, and credit and transaction
services. The Company has offices in New York, London, Tokyo, Hong Kong and
other principal financial centers around the world and has 407 securities branch
offices throughout the United States.
# # #
(See Attached Schedules)
This release may contain forward-looking statements. These statements, which
reflect management's beliefs and expectations, are subject to risks and
uncertainties that may cause actual results to differ materially. For a
discussion of the risks and uncertainties that may affect the Company's future
results, please see "Management's Discussion and Analysis of Financial Condition
and Results of Operations" in the Company's 1997 Annual Report to Shareholders.
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Financial Summary
(unaudited, dollars in millions, except per share data)
Quarter Ended Percentage
Feb 28, 1998 Feb 28, 1997 Change
------------ ------------ ------------
Net revenues
Securities $ 2,705 $ 2,219 22%
Asset Management 636 509 25%
Credit and Transaction Services 694 746 (7%)
------------ ------------
Consolidated net revenues $ 4,035 $ 3,474 16%
============ ============
Net income
Securities $ 472 $ 359 31%
Asset Management 120 86 40%
Credit and Transaction Services 99 126 (21%)
------------ ------------
Consolidated net income $ 691 $ 571 21%
============ ============
Preferred stock dividend requirements$ 15 $ 19 (21%)
============ ============
Earnings applicable to common shares $ 676 $ 552 22%
============ ============
Earnings per common share
Basic $ 1.15 $ 0.96 20%
Diluted $ 1.10 $ 0.91 21%
Diluted, excluding goodwill amort. $ 1.12 $ 0.95 18%
Average common shares outstanding
Basic 586,751,340 573,410,658
Diluted 616,377,562 605,691,066
Period end common shares outstanding 605,005,581 582,335,632
Return on common equity 20.1% 20.7%
Return on common equity excluding
goodwill amortization 20.6% 21.6%
MORGAN STANLEY DEAN WITTER & CO.
Financial Summary
(unaudited, dollars in millions, except per share data)
Quarter Ended Percentage
Feb 28, 1998 Nov 30, 1997 Change
------------ ------------ ------------
Net revenues
Securities $ 2,705 $ 2,405 12%
Asset Management 636 608 5%
Credit and Transaction Services 694 719 (3%)
------------ ------------
Consolidated net revenues $ 4,035 $ 3,732 8%
============ ============
Net income
Securities $ 472 $ 620 (24%)
Asset Management 120 111 8%
Credit and Transaction Services 99 79 25%
------------ ------------
Consolidated net income $ 691 $ 810 (15%)
============ ============
Preferred stock dividend requirements$ 15 $ 14 7%
============ ============
Earnings applicable to common shares $ 676 $ 796 (15%)
============ ============
Earnings per common share
Basic $ 1.15 $ 1.37 (16%)
Diluted $ 1.10 $ 1.30 (15%)
Diluted, excluding goodwill amort. $ 1.12 $ 1.33 (16%)
Average common shares outstanding
Basic 586,751,340 580,985,871
Diluted 616,377,562 612,092,405
Period end common shares outstanding 605,005,581 594,708,971
Return on common equity 20.1% 25.8%
Return on common equity excluding
goodwill amortization 20.6% 26.3%
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Consolidated Income Statement Information
(unaudited, dollars in millions, except per share data)
Quarter Ended Percentage
Feb 28, 1998 Feb 28, 1997 Change
------------ ------------ ------------
Investment banking $ 800 $ 522 53%
Principal transactions:
Trading 903 869 4%
Investments 72 56 29%
Commissions 547 490 12%
Fees:
Asset mgmt, distribution & admin 676 587 15%
Merchant and cardmember 428 436 (2%)
Servicing 171 200 (15%)
Interest and dividends 3,933 3,369 17%
Other 55 31 77%
------------ ------------
Total revenues $ 7,585 $ 6,560 16%
Interest expense 3,145 2,709 16%
Provision for consumer loan losses 405 377 7%
------------ ------------
Net revenues $ 4,035 $ 3,474 16%
------------ ------------
Compensation and benefits 1,788 1,490 20%
Occupancy and equipment 140 128 9%
Brokerage, clearing and exchange fees 119 95 25%
Info processing and communications 267 270 (1%)
Marketing and business development 294 288 2%
Professional services 128 93 38%
Other 166 182 (9%)
------------ ------------
Total non-interest expenses $ 2,902 $ 2,546 14%
------------ ------------
Income before income taxes 1,133 928 22%
Income tax expense 442 357 24%
------------ ------------
Net income $ 691 $ 571 21%
============ ============
Preferred stock dividend requirements $ 15 $ 19 (21%)
============ ============
Earnings applicable to common shares $ 676 $ 552 22%
============ ============
Earnings per common share:
Basic $ 1.15 $ 0.96 20%
Diluted $ 1.10 $ 0.91 21%
Diluted, excluding goodwill amort. $ 1.12 $ 0.95 18%
Average common shares outstanding:
Basic 586,751,340 573,410,658
Diluted 616,377,562 605,691,066
Return on common equity 20.1% 20.7%
Return on common equity excluding
goodwill amortization 20.6% 21.6%
MORGAN STANLEY DEAN WITTER & CO.
Consolidated Income Statement Information
(unaudited, dollars in millions, except per share data)
Quarter Ended Percentage
Feb 28, 1998 Nov 30, 1997 Change
------------ ------------ ------------
Investment banking $ 800 $ 773 3%
Principal transactions:
Trading 903 822 10%
Investments 72 65 11%
Commissions 547 553 (1%)
Fees:
Asset mgmt, distribution & admin 676 652 4%
Merchant and cardmember 428 411 4%
Servicing 171 180 (5%)
Interest and dividends 3,933 3,447 14%
Other 55 36 53%
------------ ------------
Total revenues $ 7,585 $ 6,939 9%
Interest expense 3,145 2,854 10%
Provision for consumer loan losses 405 353 15%
------------ ------------
Net revenues $ 4,035 $ 3,732 8%
------------ ------------
Compensation and benefits 1,788 1,175 52%
Occupancy and equipment 140 137 2%
Brokerage, clearing and exchange fees 119 122 (2%)
Info processing and communications 267 294 (9%)
Marketing and business development 294 324 (9%)
Professional services 128 132 (3%)
Other 166 191 (13%)
------------ ------------
Total non-interest expenses $ 2,902 $ 2,375 22%
------------ ------------
Income before income taxes 1,133 1,357 (17%)
Income tax expense 442 547 (19%)
------------ ------------
Net income $ 691 $ 810 (15%)
============ ============
Preferred stock dividend requirements $ 15 $ 14 7%
============ ============
Earnings applicable to common shares $ 676 $ 796 (15%)
============ ============
Earnings per common share:
Basic $ 1.15 $ 1.37 (16%)
Diluted $ 1.10 $ 1.30 (15%)
Diluted, excluding goodwill amort. $ 1.12 $ 1.33 (16%)
Average common shares outstanding:
Basic 586,751,340 580,985,871
Diluted 616,377,562 612,092,405
Return on common equity 20.1% 25.8%
Return on common equity excluding
goodwill amortization 20.6% 26.3%
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Securities and Asset Management Income Statement Information
(unaudited, dollars in millions)
Quarter Ended Percentage
Feb 28, 1998 Feb 28, 1997 Change
------------ ------------ ------------
Investment banking $ 800 $ 522 53%
Principal transactions:
Trading 903 869 4%
Investments 72 56 29%
Commissions 539 489 10%
Asset mgmt, distribution & admin fees 676 587 15%
Interest and dividends 3,150 2,602 21%
Other 53 29 83%
------------ ------------
Total revenues $ 6,193 $ 5,154 20%
Interest expense 2,852 2,426 18%
------------ ------------
Net revenues $ 3,341 $ 2,728 22%
------------ ------------
Compensation and benefits 1,646 1,355 21%
Occupancy and equipment 122 113 8%
Brokerage, clearing and exchange fees 116 95 22%
Info processing and communications 147 142 4%
Marketing and business development 111 96 16%
Professional services 105 75 40%
Other 121 126 (4%)
------------ ------------
Total non-interest expenses $ 2,368 $ 2,002 18%
------------ ------------
Income before income taxes 973 726 34%
Income tax expense 381 281 36%
------------ ------------
Net income $ 592 $ 445 33%
============ ============
Comp & benefits as a % of net revenues 49% 50%
Non-comp exps as a % of net revenues 22% 24%
Profit margin (1) 18% 16%
(1) Net income as a % of net revenues.
MORGAN STANLEY DEAN WITTER & CO.
Securities and Asset Management Income Statement Information
(unaudited, dollars in millions)
Quarter Ended Percentage
Feb 28, 1998 Nov 30, 1997 Change
------------ ------------ ------------
Investment banking $ 800 $ 773 3%
Principal transactions:
Trading 903 822 10%
Investments 72 65 11%
Commissions 539 544 (1%)
Asset mgmt, distribution & admin fees 676 652 4%
Interest and dividends 3,150 2,679 18%
Other 53 32 66%
------------ ------------
Total revenues $ 6,193 $ 5,567 11%
Interest expense 2,852 2,554 12%
------------ ------------
Net revenues $ 3,341 $ 3,013 11%
------------ ------------
Compensation and benefits 1,646 1,038 59%
Occupancy and equipment 122 119 3%
Brokerage, clearing and exchange fees 116 118 (2%)
Info processing and communications 147 170 (14%)
Marketing and business development 111 96 16%
Professional services 105 117 (10%)
Other 121 125 (3%)
------------ ------------
Total non-interest expenses $ 2,368 $ 1,783 33%
------------ ------------
Income before income taxes 973 1,230 (21%)
Income tax expense 381 499 (24%)
------------ ------------
Net income $ 592 $ 731 (19%)
============ ============
Comp & benefits as a % of net revenues 49% 34%
Non-comp exps as a % of net revenues 22% 25%
Profit margin (1) 18% 24%
(1) Net income as a % of net revenues.
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Credit and Transaction Services Income Statement Information
(unaudited, dollars in millions)
Quarter Ended Percentage
Feb 28, 1998 Feb 28, 1997 Change
------------ ------------ ------------
Fees:
Merchant and cardmember $ 428 $ 436 (2%)
Servicing 171 200 (15%)
Commissions 8 1 700%
Other 2 2 --
------------ ------------
Total non-interest revenues $ 609 $ 639 (5%)
Interest revenue 783 767 2%
Interest expense 293 283 4%
------------ ------------
Net interest income 490 484 1%
Provision for consumer loan losses 405 377 7%
------------ ------------
Net credit income 85 107 (21%)
------------ ------------
Net revenues $ 694 $ 746 (7%)
------------ ------------
Compensation and benefits 142 135 5%
Occupancy and equipment 18 15 20%
Brokerage, clearing and exchange fees 3 0 *
Info processing and communications 120 128 (6%)
Marketing and business development 183 192 (5%)
Professional services 23 18 28%
Other 45 56 (20%)
------------ ------------
Total non-interest expenses $ 534 $ 544 (2%)
------------ ------------
Income before income taxes 160 202 (21%)
Income tax expense 61 76 (20%)
------------ ------------
Net income $ 99 $ 126 (21%)
============ ============
Comp & benefits as a % of net revenues 20% 18%
Non-comp exps as a % of net revenues 56% 55%
Profit margin (1) 14% 17%
(1) Net income as a % of net revenues.
MORGAN STANLEY DEAN WITTER & CO.
Credit and Transaction Services Income Statement Information
(unaudited, dollars in millions)
Quarter Ended Percentage
Feb 28, 1998 Nov 30, 1997 Change
------------ ------------ ------------
Fees:
Merchant and cardmember $ 428 $ 411 4%
Servicing 171 180 (5%)
Commissions 8 9 (11%)
Other 2 4 (50%)
------------ ------------
Total non-interest revenues $ 609 $ 604 1%
Interest revenue 783 768 2%
Interest expense 293 300 (2%)
------------ ------------
Net interest income 490 468 5%
Provision for consumer loan losses 405 353 15%
------------ ------------
Net credit income 85 115 (26%)
------------ ------------
Net revenues $ 694 $ 719 (3%)
------------ ------------
Compensation and benefits 142 137 4%
Occupancy and equipment 18 18 --
Brokerage, clearing and exchange fees 3 4 (25%)
Info processing and communications 120 124 (3%)
Marketing and business development 183 228 (20%)
Professional services 23 15 53%
Other 45 66 (32%)
------------ ------------
Total non-interest expenses $ 534 $ 592 (10%)
------------ ------------
Income before income taxes 160 127 26%
Income tax expense 61 48 27%
------------ ------------
Net income $ 99 $ 79 25%
============ ============
Comp & benefits as a % of net revenues 20% 19%
Non-comp exps as a % of net revenues 56% 63%
Profit margin (1) 14% 11%
(1) Net income as a % of net revenues.
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Credit and Transaction Services Income Statement Information
(unaudited, dollars in millions)
(Managed loan basis)
Quarter Ended Percentage
Feb 28, 1998 Feb 28, 1997 Change
------------ ------------ ------------
Fees:
Merchant and cardmember $ 533 $ 548 (3%)
Servicing 0 0 --
Commissions 8 1 700%
Other 2 1 100%
------------ ------------
Total non-interest revenues $ 543 $ 550 (1%)
Interest revenue 1,362 1,285 6%
Interest expense 527 486 8%
------------ ------------
Net interest income 835 799 5%
Provision for consumer loan losses 684 603 13%
------------ ------------
Net credit income 151 196 (23%)
------------ ------------
Net revenues $ 694 $ 746 (7%)
------------ ------------
Compensation and benefits 142 135 5%
Occupancy and equipment 18 15 20%
Brokerage, clearing and exchange fees 3 0 *
Info processing and communications 120 128 (6%)
Marketing and business development 183 192 (5%)
Professional services 23 18 28%
Other 45 56 (20%)
------------ ------------
Total non-interest expenses $ 534 $ 544 (2%)
------------ ------------
Income before income taxes 160 202 (21%)
Income tax expense 61 76 (20%)
------------ ------------
Net income $ 99 $ 126 (21%)
============ ============
Comp & benefits as a % of net revenues 20% 18%
Non-comp exps as a % of net revenues 56% 55%
Profit margin (1) 14% 17%
(1) Net income as a % of net revenues.
MORGAN STANLEY DEAN WITTER & CO.
Credit and Transaction Services Income Statement Information
(unaudited, dollars in millions)
(Managed loan basis)
Quarter Ended Percentage
Feb 28, 1998 Nov 30, 1997 Change
------------ ------------ ------------
Fees:
Merchant and cardmember $ 533 $ 522 2%
Servicing 0 0 --
Commissions 8 9 (11%)
Other 2 1 100%
------------ ------------
Total non-interest revenues $ 543 $ 532 2%
Interest revenue 1,362 1,340 2%
Interest expense 527 518 2%
------------ ------------
Net interest income 835 822 2%
Provision for consumer loan losses 684 635 8%
------------ ------------
Net credit income 151 187 (19%)
------------ ------------
Net revenues $ 694 $ 719 (3%)
------------ ------------
Compensation and benefits 142 137 4%
Occupancy and equipment 18 18 --
Brokerage, clearing and exchange fees 3 4 (25%)
Info processing and communications 120 124 (3%)
Marketing and business development 183 228 (20%)
Professional services 23 15 53%
Other 45 66 (32%)
------------ ------------
Total non-interest expenses $ 534 $ 592 (10%)
------------ ------------
Income before income taxes 160 127 26%
Income tax expense 61 48 27%
------------ ------------
Net income $ 99 $ 79 25%
============ ============
Comp & benefits as a % of net revenues 20% 19%
Non-comp exps as a % of net revenues 56% 63%
Profit margin (1) 14% 11%
(1) Net income as a % of net revenues.
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Segment and Statistical Data
(unaudited)
Quarter Ended Percentage
Feb 28, 1998 Feb 28, 1997 Change
------------ ------------ ------------
MSDW
Period end common shares outstanding 605,005,581 582,335,632 4%
Book value per common share $ 22.67 $ 18.70 21%
Shareholder's equity (millions) $ 14,524 $ 11,841 23%
Total capital (millions) (1) $ 33,535 $ 33,466 --
SECURITIES ($ billions)
Brokerage
Dean Witter account executives 10,183 9,136 11%
Dean Witter client assets $ 325 $ 261 25%
Capital markets (2)
Mergers and acquisitions announced
transactions (3)
MSDW global market volume $ 43.4 $ 31.7
Rank 3 3
Worldwide equity & related issues (3)
MSDW global market volume $ 3.3 $ 2.8
Rank 3 3
ASSET MANAGEMENT ($ billions)
Assets under mgmt and administration
Products offered primarily to indivs
Mutual funds
Equity $ 71 $ 58 22%
Fixed income 52 50 4%
Money markets 31 27 15%
------------ ------------
Total mutual funds 154 135 14%
ICS Assets 16 11 45%
Other 31 22 41%
Products offered primarily to
institutional clients
Mutual funds 34 38 (11%)
Separate accts, pooled vehicle and
other arrangements 121 84 44%
Total assets under management $ 356 $ 290 23%
Global assets under custody (4) $ 402 $ 152 164%
(1) Includes capital units and non-current portion of long-term debt.
(2) Source: Securities Data Corp.
(3) Information is year to date and stated on a calendar year basis.
(4) Includes assets subject to Barclays' clients agreeing to convert.
MORGAN STANLEY DEAN WITTER & CO.
Segment and Statistical Data
(unaudited)
Quarter Ended Percentage
Feb 28, 1998 Nov 30, 1997 Change
------------ ------------ ------------
MSDW
Period end common shares outstanding 605,005,581 594,708,971 2%
Book value per common share $ 22.67 $ 22.11 3%
Shareholder's equity (millions) $ 14,524 $ 13,956 4%
Total capital (millions) (1) $ 33,535 $ 33,577 --
SECURITIES ($ billions)
Brokerage
Dean Witter account executives 10,183 9,946 2%
Dean Witter client assets $ 325 $ 302 8%
Capital markets (2)
Mergers and acquisitions announced
transactions (3)
MSDW global market volume $ 43.4 $ 339.7
Rank 3 1
Worldwide equity & related issues (3)
MSDW global market volume $ 3.3 $ 30.0
Rank 3 3
ASSET MANAGEMENT ($ billions)
Assets under mgmt and administration
Products offered primarily to indivs
Mutual funds
Equity $ 71 $ 69 3%
Fixed income 52 52 --
Money markets 31 29 7%
------------ ------------
Total mutual funds 154 150 3%
ICS Assets 16 14 14%
Other 31 29 7%
Products offered primarily to
institutional clients
Mutual funds 34 30 13%
Separate accts, pooled vehicle and
other arrangements 121 115 5%
Total assets under management $ 356 $ 338 5%
Global assets under custody (4) $ 402 $ 377 7%
(1) Includes capital units and non-current portion of long-term debt.
(2) Source: Securities Data Corp.
(3) Information is year to date and stated on a calendar year basis.
(4) Includes assets subject to Barclays' clients agreeing to convert.
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Segment and Statistical Data
(unaudited, dollars in millions)
Quarter Ended Percentage
Feb 28, 1998 Feb 28, 1997 Change
------------ ------------ ------------
CREDIT AND TRANSACTION SERVICES
Owned consumer loans
Period end $ 20,839 $ 20,856 --
Average 21,752 21,315 2%
Managed consumer loans (1)
Period end $ 35,804 $ 33,986 5%
Average $ 36,828 $ 34,512 7%
Interest yield 14.72% 14.86% (0.14 pp)
Interest spread 8.46% 8.73% (0.27 pp)
Net charge-off rate 7.50% 6.91% 0.59 pp
Delinquency rate (over 30 days) 7.40% 7.49% (0.09 pp)
General purpose credit card accounts(in mil) 40 39
NOVUS Network increase in merchant
locations (in thousands) 90 92
(1) Includes owned and securitized consumer loans.
MORGAN STANLEY DEAN WITTER & CO.
Segment and Statistical Data
(unaudited, dollars in millions)
Quarter Ended Percentage
Feb 28, 1998 Nov 30, 1997 Change
------------ ------------ ------------
CREDIT AND TRANSACTION SERVICES
Owned consumer loans
Period end $ 20,839 $ 20,917 --
Average 21,752 21,186 3%
Managed consumer loans (1)
Period end $ 35,804 $ 35,950 --
Average $ 36,828 $ 35,298 4%
Interest yield 14.72% 14.79% (0.07 pp)
Interest spread 8.46% 8.58% (0.12 pp)
Net charge-off rate 7.50% 7.21% 0.29 pp
Delinquency rate (over 30 days) 7.40% 6.98% 0.42 pp
General purpose credit card accounts(in mil) 40 40
NOVUS Network increase in merchant
locations (in thousands) 90 103
(1) Includes owned and securitized consumer loans.
<PAGE>
EXHIBIT 99.2
MORGAN STANLEY, DEAN WITTER, DISCOVER & CO.
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NEWS
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Shareholders Approve Parent Company Name Change to
Morgan Stanley Dean Witter & Co.
Orlando, FL -- March 24 -- Effective at the close of business today, Morgan
Stanley, Dean Witter, Discover & Co. (NYSE:MWD) will be named Morgan Stanley
Dean Witter & Co. As expected, shareholders approved the proposed name change
at the Company's Annual Meeting of Shareholders today in Orlando. The company's
stock symbol ---"MWD"----- remains unchanged.
Morgan Stanley Dean Witter & Co. is a global financial firm and a market leader
in securities, asset management, and credit and transaction services. The
Company has offices in New York, London, Hong Kong and other principal financial
centers around the world and has 399 securities branch offices throughout the
United States.
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