Exhibit 99.3
| Item 6. | Selected Financial Data. |
MORGAN STANLEY
SELECTED FINANCIAL DATA
(dollars in millions, except share and per share data)
| Fiscal Year(1) | ||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
Income Statement Data: | ||||||||||||||||||
Revenues: | ||||||||||||||||||
Investment banking | $ | 4,092 | $ | 6,368 | $ | 4,755 | $ | 3,843 | $ | 3,341 | ||||||||
Principal transactions: | ||||||||||||||||||
Trading | 5,457 | 3,206 | 11,805 | 7,377 | 5,512 | |||||||||||||
Investments | (4,192 | ) | 3,262 | 1,806 | 1,127 | 721 | ||||||||||||
Commissions | 4,463 | 4,682 | 3,770 | 3,331 | 3,235 | |||||||||||||
Asset management, distribution and administration fees | 5,660 | 6,519 | 5,238 | 4,915 | 4,436 | |||||||||||||
Other | 4,133 | 793 | 229 | (82 | ) | (172 | ) | |||||||||||
Total non-interest revenues | 19,613 | 24,830 | 27,603 | 20,511 | 17,073 | |||||||||||||
Interest and dividends | 40,718 | 60,078 | 42,776 | 25,986 | 16,719 | |||||||||||||
Interest expense | 37,479 | 57,301 | 40,912 | 23,559 | 13,978 | |||||||||||||
Net interest | 3,239 | 2,777 | 1,864 | 2,427 | 2,741 | |||||||||||||
Net revenues | 22,852 | 27,607 | 29,467 | 22,938 | 19,814 | |||||||||||||
Non-interest expenses: | ||||||||||||||||||
Compensation and benefits | 12,134 | 16,418 | 13,865 | 10,638 | 9,239 | |||||||||||||
Other | 9,931 | 7,914 | 6,652 | 6,377 | 5,423 | |||||||||||||
Total non-interest expenses | 22,065 | 24,332 | 20,517 | 17,015 | 14,662 | |||||||||||||
Income from continuing operations before income taxes, dividends on preferred securities subject to mandatory redemption and cumulative effect of accounting change, net | 787 | 3,275 | 8,950 | 5,923 | 5,152 | |||||||||||||
(Benefit from) provision for income taxes | (129 | ) | 769 | 2,681 | 1,442 | 1,370 | ||||||||||||
Dividends on preferred securities subject to mandatory redemption | — | — | — | — | 45 | |||||||||||||
Income from continuing operations before cumulative effect of accounting change, net | 916 | 2,506 | 6,269 | 4,481 | 3,737 | |||||||||||||
Discontinued operations: | ||||||||||||||||||
Net gain from discontinued operations | 1,471 | 1,183 | 1,795 | 644 | 1,170 | |||||||||||||
Provision for income taxes | 609 | 440 | 577 | 233 | 418 | |||||||||||||
Net gain on discontinued operations | 862 | 743 | 1,218 | 411 | 752 | |||||||||||||
Cumulative effect of accounting change, net | — | — | — | 49 | — | |||||||||||||
Net income | $ | 1,778 | $ | 3,249 | $ | 7,487 | $ | 4,941 | $ | 4,489 | ||||||||
Net income applicable to non-controlling interests | 71 | 40 | 15 | 2 | 3 | |||||||||||||
Net income applicable to Morgan Stanley | $ | 1,707 | $ | 3,209 | $ | 7,472 | $ | 4,939 | $ | 4,486 | ||||||||
Earnings applicable to Morgan Stanley common shareholders(2) | $ | 1,495 | $ | 2,976 | $ | 7,027 | $ | 4,774 | $ | 4,442 | ||||||||
Amounts applicable to Morgan Stanley: | ||||||||||||||||||
Income from continuing operations | $ | 883 | $ | 2,468 | $ | 6,257 | $ | 4,481 | $ | 3,737 | ||||||||
Gain from discontinued operations, net of tax | 824 | 741 | 1,215 | 409 | 749 | |||||||||||||
Cumulative effect of accounting change, net | — | — | — | 49 | — | |||||||||||||
Net income applicable to Morgan Stanley | $ | 1,707 | $ | 3,209 | $ | 7,472 | $ | 4,939 | $ | 4,486 | ||||||||
| 1 |  |
| Fiscal Year(1) | ||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Per Share Data: | ||||||||||||||||||||
Earnings per basic common share: | ||||||||||||||||||||
Income from continuing operations | $ | 0.68 | $ | 2.27 | $ | 5.82 | $ | 4.12 | $ | 3.42 | ||||||||||
Gain on discontinued operations | 0.77 | 0.70 | 1.14 | 0.38 | 0.69 | |||||||||||||||
Cumulative effect of accounting change, net | — | — | — | 0.05 | — | |||||||||||||||
Earnings per basic common share | $ | 1.45 | $ | 2.97 | $ | 6.96 | $ | 4.55 | $ | 4.11 | ||||||||||
Earnings per diluted common share: | ||||||||||||||||||||
Income from continuing operations | $ | 0.65 | $ | 2.22 | $ | 5.73 | $ | 4.08 | $ | 3.35 | ||||||||||
Gain on discontinued operations | 0.74 | 0.68 | 1.12 | 0.37 | 0.67 | |||||||||||||||
Cumulative effect of accounting change, net | — | — | — | 0.05 | — | |||||||||||||||
Earnings per diluted common share | $ | 1.39 | $ | 2.90 | $ | 6.85 | $ | 4.50 | $ | 4.02 | ||||||||||
Book value per common share | $ | 30.24 | $ | 28.56 | $ | 32.67 | $ | 27.59 | $ | 25.95 | ||||||||||
Dividends per common share | $ | 1.08 | $ | 1.08 | $ | 1.08 | $ | 1.08 | $ | 1.00 | ||||||||||
Balance Sheet and Other Operating Data: | ||||||||||||||||||||
Total assets | $ | 659,035 | $ | 1,045,409 | $ | 1,121,192 | $ | 898,835 | $ | 747,578 | ||||||||||
Consumer loans, net | — | — | 22,915 | 21,966 | 19,166 | |||||||||||||||
Total capital(3) | 192,297 | 191,085 | 162,134 | 125,891 | 110,793 | |||||||||||||||
Long-term borrowings(3) | 141,466 | 159,816 | 126,770 | 96,709 | 82,587 | |||||||||||||||
Morgan Stanley shareholders’ equity | 50,831 | 31,269 | 35,364 | 29,182 | 28,206 | |||||||||||||||
Return on average common shareholders’ equity | 4.9 | % | 8.9 | % | 23.5 | % | 17.3 | % | 16.8 | % | ||||||||||
Average common and equivalent shares(2) | 1,028,180,275 | 1,001,878,651 | 1,010,254,255 | 1,049,896,047 | 1,080,121,708 | |||||||||||||||
| (1) | Certain prior-period information has been reclassified to conform to the current year’s presentation. |
| (2) | Amounts shown are used to calculate earnings per basic common share. |
| (3) | These amounts exclude the current portion of long-term borrowings and include junior subordinated debt issued to capital trusts and include capital units as of November 30, 2006, November 30, 2005 and November 30, 2004. |
| 2 |