|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: MORGAN STANLEY DEAN WITTER & CO, 424B3, 2000-12-19 |
Next: MORGAN STANLEY DEAN WITTER & CO, 8-K, EX-99.1, 2000-12-19 |
<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): December 19, 2000
Morgan Stanley Dean Witter & Co.
--------------------------------------
(Exact name of Registrant as specified
in its charter)
Delaware 1-11758 36-3145972
-------------------------------------------------------------------------
(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 December 19, 2000, Morgan Stanley Dean Witter & Co. (the "Registrant")
released financial information with respect to the quarter ended November 30,
2000. 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.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
--------------------------------------------------------------------------
99.1 Press release of the Registrant dated December 19, 2000
containing financial information for the fourth quarter
ended November 30, 2000.
<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:
--------------------------------
Ronald T. Carman
Assistant Secretary
Dated: December 19, 2000
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Financial Summary
(unaudited, dollars in millions)
<TABLE>
<CAPTION>
Percentage
Quarter Ended Change From: Twelve Months Ended
---------------------------------------- ---------------- -------------------
Nov 30, Nov 30, Aug 31, Nov 30, Aug 31, Nov 30, Nov 30, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
------------- ------------ ---------- ------- -------- ---------- ---------- ----------
Net revenues
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Securities $ 4,006 $ 4,125 $ 4,602 (3%) (13%) $ 19,980 $ 16,312 22%
Asset Management 658 545 639 21% 3% 2,526 2,112 20%
Credit Services 990 963 1,053 3% (6%) 3,921 3,522 11%
--------- ---------- ---------- ----------- -----------
Consolidated net revenues $ 5,654 $ 5,633 $ 6,294 -- (10%) $ 26,427 $ 21,946 20%
========= ========== ========== =========== ===========
Net income
Securities $ 888 $ 1,395 $ 825 (36%) 8% $ 4,047 $ 3,681 10%
Asset Management 170 113 199 50% (15%) 683 448 52%
Credit Services 150 125 222 20% (32%) 726 662 10%
--------- ---------- ---------- ----------- -----------
Consolidated net income $ 1,208 $ 1,633 $ 1,246 (26%) (3%) $ 5,456 $ 4,791 14%
========= ========== ========== =========== ===========
Preferred stock dividend
requirements $ 9 $ 11 $ 9 (18%) -- $ 36 $ 44 (18%)
========= ========== ========== =========== ===========
Earnings applicable to
common shares $ 1,199 $ 1,622 $ 1,237 (26%) (3%) $ 5,420 $ 4,747 14%
========= ========== ========== =========== ===========
Earnings per common share
Basic $ 1.10 1.50 $ 1.14 (27%) (4%) $ 4.95 $ 4.33 14%
Diluted $ 1.06 1.42 $ 1.09 (25%) (3%) $ 4.73 $ 4.10 15%
Average common shares
outstanding
Basic 1,089,728,519 1,079,522,844 1,088,218,669 1,095,858,438 1,096,789,720
Diluted 1,135,358,763 1,142,086,246 1,137,304,026 1,145,011,515 1,159,500,670
Period end common shares
outstanding 1,107,270,331 1,104,630,098 1,121,597,725 1,107,270,331 1,104,630,098
Return on common equity 26.5% 43.1% 27.6% 30.9% 32.6%
</TABLE>
_____________________________
Note: Certain reclassifications have been made to prior period amounts to
conform to the current presentation.
F - 1
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Consolidated Income Statement Information
(unaudited, dollars in millions)
Quarter Ended Percentage Change From: Twelve Months Ended
---------------------------------- ------------------------ --------------------
Nov 30, Nov 30, Aug 31, Nov 30, Aug 31, Nov 30, Nov 30, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
---------- ---------- ---------- ------------ --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment banking $ 1,131 $ 1,338 $ 1,172 (15%) (3%) $ 5,008 $ 4,523 11%
Principal transactions:
Trading 985 1,138 1,630 (13%) (40%) 7,393 5,830 27%
Investments (70) 232 68 (130%) (203%) 193 725 (73%)
Commissions 858 741 831 16% 3% 3,645 2,774 31%
Fees:
Asset management,
distribution and
administration 1,086 874 1,092 24% (1%) 4,219 3,324 27%
Merchant and cardmember 443 402 447 10% (1%) 1,780 1,492 19%
Servicing 390 318 424 23% (8%) 1,450 1,194 21%
Interest and dividends 5,465 3,810 5,897 43% (7%) 21,234 14,880 43%
Other 156 74 150 111% 4% 491 248 98%
-------- -------- -------- -------- --------
Total revenues 10,444 8,927 11,711 17% (11%) 45,413 34,990 30%
Interest expense 4,582 3,174 5,242 44% (13%) 18,176 12,515 45%
Provision for consumer
loan losses 208 120 175 73% 19% 810 529 53%
-------- -------- -------- -------- --------
Net revenues 5,654 5,633 6,294 -- (10%) 26,427 21,946 20%
-------- -------- -------- -------- --------
Compensation and benefits 1,775 1,320 2,656 34% (33%) 10,936 8,398 30%
Occupancy and equipment 221 178 202 24% 9% 772 643 20%
Brokerage, clearing and
exchange fees 136 116 132 17% 3% 519 485 7%
Information processing and
communications 437 376 392 16% 11% 1,556 1,325 17%
Marketing and business
development 578 495 507 17% 14% 2,058 1,679 23%
Professional services 362 269 275 35% 32% 1,037 836 24%
Other 256 244 255 5% -- 1,058 852 24%
-------- -------- -------- -------- --------
Total non-interest
expenses 3,765 2,998 4,419 26% (15%) 17,936 14,218 26%
-------- -------- -------- -------- --------
Gain on sale of business 0 0 35 -- * 35 0 *
-------- -------- -------- -------- --------
Income before income taxes 1,889 2,635 1,910 (28%) (1%) 8,526 7,728 10%
Income tax expense 681 1,002 664 (32%) 3% 3,070 2,937 5%
-------- -------- -------- -------- --------
Net income $ 1,208 $ 1,633 $ 1,246 (26%) (3%) $ 5,456 $ 4,791 14%
======== ======== ======== ======== ========
Preferred stock dividend
requirements $ 9 $ 11 $ 9 (18%) -- $ 36 $ 44 (18%)
======== ======== ======== ======== ========
Earnings applicable to
common shares $ 1,199 $ 1,622 $ 1,237 (26%) (3%) $ 5,420 $ 4,747 14%
======== ======== ======== ======== ========
Compensation and benefits
as a % of net revenues 31% 23% 42% 41% 38%
</TABLE>
___________________
Note: Certain reclassifications have been made to prior period amounts to
conform to the current presentation.
F - 2
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Securities Income Statement Information
(unaudited, dollars in millions)
Percentage
Quarter Ended Change From: Twelve Months Ended
---------------------------------- ------------------------ -------------------
Nov 30, Nov 30, Aug 31, Nov 30, Aug 31, Nov 30, Nov 30, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
----------- ---------- --------- ------------ --------- --------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment banking $ 1,108 $ 1,315 $ 1,145 (16%) (3%) $ 4,881 $ 4,430 10%
Principal transactions:
Trading 985 1,138 1,630 (13%) (40%) 7,393 5,830 27%
Investments (103) 227 55 (145%) * 133 712 (81%)
Commissions 854 739 828 16% 3% 3,629 2,770 31%
Asset management, distribution
and administration fees 514 374 512 37% -- 1,967 1,374 43%
Interest and dividends 4,745 3,173 5,206 50% (9%) 18,308 12,573 46%
Other 156 74 150 111% 4% 491 248 98%
------- ------- ------- ------- -------
Total revenues 8,259 7,040 9,526 17% (13%) 36,802 27,937 32%
Interest expense 4,253 2,915 4,924 46% (14%) 16,822 11,625 45%
------- ------- ------- ------- -------
Net revenues 4,006 4,125 4,602 (3%) (13%) 19,980 16,312 22%
------- ------- ------- ------- -------
Compensation and benefits 1,421 1,000 2,305 42% (38%) 9,557 7,225 32%
Occupancy and equipment 181 139 163 30% 11% 621 493 26%
Brokerage, clearing and
exchange fees 104 99 109 5% (5%) 425 378 12%
Information processing and
communications 283 220 245 29% 16% 986 756 30%
Marketing and business
development 189 137 176 38% 7% 706 511 38%
Professional services 292 182 223 60% 31% 817 578 41%
Other 152 144 147 6% 3% 631 507 24%
------- ------- ------- ------- -------
Total non-interest
expenses 2,622 1,921 3,368 36% (22%) 13,743 10,448 32%
------- ------- ------- ------- -------
Income before income taxes 1,384 2,204 1,234 (37%) 12% 6,237 5,864 6%
Income tax expense 496 809 409 (39%) 21% 2,190 2,183 --
------- ------- ------- ------- -------
Net income $ 888 $ 1,395 $ 825 (36%) 8% $ 4,047 $ 3,681 10%
======= ======= ======= ======= =======
Compensation and benefits as
a % of net revenues 35% 24% 50% 48% 44%
Non-compensation expenses as
a % of net revenues 30% 22% 23% 21% 20%
Profit margin (1) 22% 34% 18% 20% 23%
</TABLE>
__________________
(1) Net income as a % of net revenues.
F - 3
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Asset Management Income Statement Information
(unaudited, dollars in millions)
Percentage
Quarter Ended Change From: Twelve Months Ended
---------------------------------- ------------------------ -------------------
Nov 30, Nov 30, Aug 31, Nov 30, Aug 31, Nov 30, Nov 30, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
----------- ---------- --------- ------------ --------- --------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment banking $ 23 $ 23 $ 27 -- (15%) $ 127 $ 93 37%
Principal transactions:
Investments 33 5 13 * 154% 60 13 *
Commissions 4 2 3 100% 33% 16 4 *
Asset management, distribution
and administration fees 572 500 580 14% (1%) 2,252 1,950 15%
Interest and dividends 28 15 18 87% 56% 78 61 28%
------ ------ ------ ------ ------
Total revenues 660 545 641 21% 3% 2,533 2,121 19%
Interest expense 2 0 2 * -- 7 9 (22%)
------ ------ ------ ------ ------
Net revenues 658 545 639 21% 3% 2,526 2,112 20%
------ ------ ------ ------ ------
Compensation and benefits 180 169 187 7% (4%) 751 648 16%
Occupancy and equipment 23 25 23 (8%) -- 89 96 (7%)
Brokerage, clearing and
exchange fees 32 17 23 88% 39% 94 107 (12%)
Information processing and
communications 21 28 19 (25%) 11% 77 92 (16%)
Marketing and business development 49 30 38 63% 29% 161 127 27%
Professional services 34 48 22 (29%) 55% 101 137 (26%)
Other 34 35 33 (3%) 3% 143 138 4%
------ ------ ------ ------ ------
Total non-interest expenses 373 352 345 6% 8% 1,416 1,345 5%
------ ------ ------ ------ ------
Gain on sale of business 0 0 35 -- * 35 0 *
------ ------ ------ ------ ------
Income before income taxes 285 193 329 48% (13%) 1,145 767 49%
Income tax expense 115 80 130 44% (12%) 462 319 45%
------ ------ ------ ------ ------
Net income $ 170 $ 113 $ 199 50% (15%) $ 683 $ 448 52%
====== ====== ====== ====== ======
Compensation and benefits as
a % of net revenues 27% 31% 29% 30% 31%
Non-compensation expenses as
a % of net revenues 29% 34% 25% 26% 33%
Profit margin (1) 26% 21% 31% 27% 21%
</TABLE>
______________
(1) Net income as a % of net revenues.
F - 4
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Credit Services Income Statement Information
(unaudited, dollars in millions)
Quarter Ended Percentage Change From: Twelve Months Ended
---------------------------------- ------------------------ -------------------
Nov 30, Nov 30, Aug 31, Nov 30, Aug 31, Nov 30, Nov 30, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
----------- ---------- --------- ------------ --------- --------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fees:
Merchant and cardmember $ 443 $ 402 $ 447 10% (1%) $1,780 $1,492 19%
Servicing 390 318 424 23% (8%) 1,450 1,194 21%
------ ------ ------ ------ ------
Total non-interest revenues 833 720 871 16% (4%) 3,230 2,686 20%
Interest revenue 692 622 673 11% 3% 2,848 2,246 27%
Interest expense 327 259 316 26% 3% 1,347 881 53%
------ ------ ------ ------ ------
Net interest income 365 363 357 1% 2% 1,501 1,365 10%
Provision for consumer loan losses 208 120 175 73% 19% 810 529 53%
------ ------ ------ ------ ------
Net credit income 157 243 182 (35%) (14%) 691 836 (17%)
------ ------ ------ ------ ------
Net revenues 990 963 1,053 3% (6%) 3,921 3,522 11%
------ ------ ------ ------ ------
Compensation and benefits 174 151 164 15% 6% 628 525 20%
Occupancy and equipment 17 14 16 21% 6% 62 54 15%
Information processing and
communications 133 128 128 4% 4% 493 477 3%
Marketing and business development 340 328 293 4% 16% 1,191 1,041 14%
Professional services 36 39 30 (8%) 20% 119 121 (2%)
Other 70 65 75 8% (7%) 284 207 37%
------ ------ ------ ------ ------
Total non-interest expenses 770 725 706 6% 9% 2,777 2,425 15%
------ ------ ------ ------ ------
Income before income taxes 220 238 347 (8%) (37%) 1,144 1,097 4%
Income tax expense 70 113 125 (38%) (44%) 418 435 (4%)
------ ------ ------ ------ ------
Net income $ 150 $ 125 $ 222 20% (32%) $ 726 $ 662 10%
====== ====== ====== ====== ======
Compensation and benefits as
a % of net revenues 18% 16% 16% 16% 15%
Non-compensation expenses as
a % of net revenues 60% 60% 51% 55% 54%
Profit margin (1) 15% 13% 21% 19% 19%
</TABLE>
________________
(1) Net income as a % of net revenues.
F - 5
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Credit Services Income Statement Information
(unaudited, dollars in millions)
(Managed loan basis)
Quarter Ended Percentage Change From: Twelve Months Ended
---------------------------------- ------------------------ -------------------
Nov 30, Nov 30, Aug 31, Nov 30, Aug 31, Nov 30, Nov 30, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
----------- ---------- --------- ------------ --------- --------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fees:
Merchant and cardmember $ 597 $ 536 $ 634 11% (6%) $2,407 $2,044 18%
Servicing 0 0 0 -- -- 0 0 --
------ ------ ------ ------ ------
Total non-interest revenues 597 536 634 11% (6%) 2,407 2,044 18%
Interest revenue 1,665 1,288 1,617 29% 3% 6,280 4,940 27%
Interest expense 747 511 728 46% 3% 2,809 1,877 50%
------ ------ ------ ------ ------
Net interest income 918 777 889 18% 3% 3,471 3,063 13%
Provision for consumer loan losses 525 350 470 50% 12% 1,957 1,585 23%
------ ------ ------ ------ ------
Net credit income 393 427 419 (8%) (6%) 1,514 1,478 2%
------ ------ ------ ------ ------
Net revenues 990 963 1,053 3% (6%) 3,921 3,522 11%
------ ------ ------ ------ ------
Compensation and benefits 174 151 164 15% 6% 628 525 20%
Occupancy and equipment 17 14 16 21% 6% 62 54 15%
Information processing and
communications 133 128 128 4% 4% 493 477 3%
Marketing and business development 340 328 293 4% 16% 1,191 1,041 14%
Professional services 36 39 30 (8%) 20% 119 121 (2%)
Other 70 65 75 8% (7%) 284 207 37%
------ ------ ------ ------ ------
Total non-interest expenses 770 725 706 6% 9% 2,777 2,425 15%
------ ------ ------ ------ ------
Income before income taxes 220 238 347 (8%) (37%) 1,144 1,097 4%
Income tax expense 70 113 125 (38%) (44%) 418 435 (4%)
------ ------ ------ ------ ------
Net income $ 150 $ 125 $ 222 20% (32%) $ 726 $ 662 10%
====== ====== ====== ====== ======
Compensation and benefits as
a % of net revenues 18% 16% 16% 16% 15%
Non-compensation expenses as
a % of net revenues 60% 60% 51% 55% 54%
Profit margin (1) 15% 13% 21% 19% 19%
</TABLE>
_______________
(1) Net income as a % of net revenues.
F - 6
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Financial Information and Statistical Data
(unaudited)
Quarter Ended Percentage Change From:
---------------------------------------------------------- ---------------------------
Nov 30, 2000 Nov 30, 1999 Aug 31, 2000 Nov 30, 1999 Aug 31, 2000
------------------ ------------------ ------------------ ------------ -------------
MSDW
<S> <C> <C> <C> <C> <C>
Total assets (millions) $ 427,000 $ 367,000 $ 404,000 16% 6%
Period end common shares outstanding 1,107,270,331 1,104,630,098 1,121,597,725 -- (1%)
Book value per common share $ 16.91 $ 14.85 $ 16.19 14% 4%
Shareholders' equity (millions) (1) $ 19,671 $ 17,414 $ 19,054 13% 3%
Total capital (millions) (2) $ 49,637 $ 39,699 $ 50,311 25% (1%)
SECURITIES ($ billions)
Individual Investor Group
Global financial advisors 13,910 12,674 13,789 10% 1%
Total client assets $ 659 $ 595 $ 778 11% (15%)
Fee-based client account assets (3) $ 142 $ 111 $ 155 28% (8%)
Institutional Securities (4)
Mergers and acquisitions announced
transactions (5)
MSDW global market volume $ 1,069.5 $ 1,003.3 $ 926.2
Rank 2 3 1
Worldwide equity and related
issues (5)
MSDW global market volume $ 59.3 $ 61.8 $ 43.9
Rank 3 1 2
ASSET MANAGEMENT ($ billions)
Assets under management or supervision
Products offered primarily to
individuals
Mutual funds
Equity $ 103 $ 94 $ 122 10% (16%)
Fixed income 46 53 49 (13%) (6%)
Money markets 57 47 55 21% 4%
--------------- --------------- ---------------
Total mutual funds 206 194 226 6% (9%)
ICS Assets 31 23 34 35% (9%)
Separate accounts, unit
trust and other arrangements 82 75 94 9% (13%)
------------------ ------------------ ------------------
Sub-total Individual 319 292 354 9% (10%)
------------------ ------------------ ------------------
Products offered primarily to
institutional clients
Mutual funds 36 33 38 9% (5%)
Separate accounts, pooled
vehicle and other arrangements 147 147 156 -- (6%)
------------------ ------------------ ------------------
Sub-total Institutional 183 180 194 2% (6%)
------------------ ------------------ ------------------
Total assets under management or
supervision $ 502 $ 472 $ 548 6% (8%)
================== ================== ==================
</TABLE>
____________________
(1) Includes preferred and common equity and preferred securities issued by
subsidiaries.
(2) Includes preferred and common equity, preferred securities issued by
subsidiaries, capital units and non-current portion of long-term debt.
(3) Represents the amount of assets in client accounts where the basis of
payment for services is a fee calculated on those assets.
(4) Source: Thomson Financial Securities Data.
(5) Information is year to date and stated on a calendar year basis.
F - 7
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Financial Information and Statistical Data
(unaudited, dollars in millions)
Quarter Ended Percentage Change From: Twelve Months Ended
---------------------------------- ------------------------ -------------------
Nov 30, Nov 30, Aug 31, Nov 30, Aug 31, Nov 30, Nov 30, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
----------- ---------- --------- ------------ --------- --------- -------- ----------
CREDIT SERVICES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Owned consumer loans
Period end $ 21,870 $ 20,998 $ 19,817 4% 10% $ 21,870 $ 20,998 4%
Average $ 20,901 $ 18,341 $ 20,091 14% 4% $ 21,910 $ 16,177 35%
Managed consumer loans (1)
Period end $ 47,126 $ 37,975 $ 44,841 24% 5% $ 47,126 $ 37,975 24%
Average $ 45,828 $ 35,608 $ 44,345 29% 3% $ 43,540 $ 33,534 30%
Interest yield 14.13% 14.15% 14.05% (2 bp) 8 bp 13.82% 14.23% (41 bp)
Interest spread 7.39% 8.22% 7.35% (83 bp) 4 bp 7.28% 8.49% (121 bp)
Net charge-off rate 4.57% 4.63% 4.18% (6 bp) 39 bp 4.40% 5.42% (102 bp)
Delinquency rate
(over 30 days) 5.92% 6.32% 5.47% (40 bp) 45 bp 5.92% 6.32% (40 bp)
Credit Card
Transaction volume
(billions) $ 22.8 $ 20.5 $ 21.9 11% 4% $ 90.1 $ 70.6 28%
Accounts (millions) 42.6 38.5 41.4 11% 3% 42.6 38.5 11%
Active accounts (millions) 23.8 22.1 23.1 8% 3% 23.8 22.1 8%
Average receivables
per average active account
(actual $) $ 1,960 $ 1,654 $ 1,924 19% 2% $ 1,893 $ 1,581 20%
Discover Business
Services' increase in
merchant locations (thousands) 263 233 134 13% 96% 670 615 9%
</TABLE>
__________________
(1) Includes owned and securitized consumer loans.
F - 8
|
|