THE BEAR STEARNS COMPANIES INC.
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SEGMENT DATA
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(UNAUDITED)
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Three Months Ended % Change From
---------------------------------------------------------- ------------------------------------
February 28, February 23, November 30, February 23, November 30,
2002 2001 2001 2001 2001
------------------ ----------------- ------------------ ----------------- -----------------
(In thousands)
NET REVENUES
Capital Markets
Institutional Equities $ 247,918 $ 341,171 $ 232,181 (27%) 7%
Fixed Income 548,194 340,389 331,231 61% 66%
Investment Banking 141,318 119,975 227,372 18% (38%)
---------------- ---------------- ----------------
Total Capital Markets 937,430 801,535 790,784 17% 19%
Global Clearing Services 187,380 223,900 187,297 (16%) 0%
Wealth Management 123,211 144,588 136,963 (15%) (10%)
Other (a) (8,843) 43,764 4,788 (120%) (285%)
---------------- ---------------- ----------------
Total net revenues $ 1,239,178 $ 1,213,787 $ 1,119,832 2% 11%
================ ================ ================
PRE-TAX INCOME
Capital Markets $ 273,593 $ 188,281 $ 206,465 45% 33%
Global Clearing Services 68,973 79,133 61,511 (13%) 12%
Wealth Management 1,780 16,204 10,151 (89%) (82%)
Other (a) (70,819) (30,654) (68,162) (131%) (4%)
---------------- ---------------- ----------------
Total pre-tax income $ 273,527 $ 252,964 $ 209,965 8% 30%
================ ================ ================
(a) Other is comprised of consolidation/elimination entries, unallocated
revenues (predominantly interest) and certain corporate administrative
functions, including certain legal costs and costs related to the Capital
Accumulation Plan (the "CAP Plan") for Senior Managing Directors.
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THE BEAR STEARNS COMPANIES INC.
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CONSOLIDATED STATEMENTS OF INCOME
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(UNAUDITED)
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Three Months Ended % Change From
------------------------------------------------ --------------------------
February 28, February 23, November 30, February 23, November 30,
2002 2001 2001 2001 2001
-------------- -------------- -------------- ------------ ------------
(In thousands, except share and per share data)
REVENUES
Commissions $ 264,657 $ 282,401 $ 276,605 (6%) (4%)
Principal transactions 660,750 589,571 419,501 12% 58%
Investment banking 151,894 138,324 240,396 10% (37%)
Interest and dividends 598,633 1,086,599 803,094 (45%) (25%)
Other income 42,210 39,281 74,074 7% (43%)
-------------- -------------- --------------
Total revenues 1,718,144 2,136,176 1,813,670 (20%) (5%)
Interest expense 478,966 922,389 693,838 (48%) (31%)
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Revenues, net of interest expense 1,239,178 1,213,787 1,119,832 2% 11%
-------------- -------------- --------------
NON-INTEREST EXPENSES
Employee compensation and benefits 633,642 635,125 523,052 0% 21%
Floor brokerage, exchange and clearance fees 39,749 35,573 42,925 12% (7%)
Communications and technology 104,673 115,034 111,917 (9%) (6%)
Occupancy 44,206 31,257 37,587 41% 18%
Advertising and market development 23,524 33,832 25,690 (30%) (8%)
Professional fees 33,824 37,428 42,522 (10%) (20%)
Other expenses 86,033 72,574 126,174 19% (32%)
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Total non-interest expenses 965,651 960,823 909,867 1% 6%
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Income before provision for income taxes and
cumulative effect of change in accounting
principle 273,527 252,964 209,965 8% 30%
Provision for income taxes 93,001 87,010 55,019 7% 69%
-------------- -------------- --------------
Income before cumulative effect of change in
accounting principle 180,526 165,954 154,946 9% 17%
Cumulative effect of change in accounting
principle, net of tax - (6,273) - - -
-------------- -------------- --------------
Net income $ 180,526 $ 159,681 $ 154,946 13% 17%
============== ============== ==============
Net income applicable to common shares $ 170,748 $ 149,903 $ 145,168 14% 18%
============== ============== ==============
Adjusted net income used for diluted earnings
per share (1) $ 190,739 $ 167,544 $ 157,118 14% 21%
============== ============== ==============
Basic earnings per share $ 1.39 $ 1.11(2) $ 1.14 25% 22%
============== ============== ==============
Diluted earnings per share $ 1.29 $ 1.06(2) $ 1.08 22% 19%
============== ============== ==============
Weighted average common and common equivalent
shares outstanding:
Basic 134,793,949 149,080,028 136,671,817
============== ============== ==============
Diluted 148,115,050 158,617,123 145,040,061
============== ============== ==============
Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15
============== ============== ==============
(1) Represents net income reduced for preferred stock dividends and increased
for costs related to the CAP Plan. For earnings per share, the costs related to
the CAP Plan (net of tax) are added back as the shares related to the CAP Plan
are included in weighted average shares outstanding.
(2) Amount reflects earnings per share after change in accounting principle.
Basic earnings per share and diluted earnings per share before the change in
accounting principle were $1.15 and $1.10, respectively.
Note: Certain reclassifications have been made to prior period amounts to
conform to the current period's presentation.
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THE BEAR STEARNS COMPANIES INC.
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SELECTED FINANCIAL INFORMATION
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(UNAUDITED)
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Three Months Ended
-----------------------------------------------------------------------
February 28, November 30, August 31, May 25, February 23,
2002 2001 2001 2001 2001
-------------- -----------------------------------------------------
(In thousands, except per share amounts and Other Data)
Income Statement
- ----------------
Revenues, net of interest expense $ 1,239,178 $ 1,119,832 $ 1,204,758 $ 1,368,658 $ 1,213,787
Net income $ 180,526 $ 154,946 $ 134,572 $ 169,493 $ 159,681
Net income applicable to common shares $ 170,748 $ 145,168 $ 124,794 $ 159,715 $ 149,903
Adjusted net income used for diluted earnings per share(1) $ 190,739 $ 157,118 $ 141,866 $ 183,046 $ 167,544
Earnings per common share:
Basic $ 1.39 $ 1.14 $ 1.00 $ 1.23 $ 1.11(2)
Diluted $ 1.29 $ 1.08 $ 0.95 $ 1.18 $ 1.06(2)
Financial Ratios
- ----------------
Return on average common equity (annualized) 15.2% 13.9% 12.2% 15.0% 13.6%
Adjusted pre-tax profit margin (3) 24.9% 20.6% 19.5% 22.5% 23.4%
Pre-tax profit margin (4) 22.1% 18.7% 17.0% 19.5% 20.8%
After-tax profit margin (5) 14.6% 13.8% 11.2% 12.4% 13.2%
Compensation & benefits/Revenues, net of interest expense 51.1% 46.7% 52.7% 53.7% 52.3%
Balance Sheet
- -------------
Stockholders' equity, at period end $ 5,760,905 $ 5,628,527 $ 5,148,394 $ 5,534,723 $ 5,621,405
Total stockholders' equity and trust issued preferred
securities, at period end $ 6,323,405 $ 6,391,027 $ 5,910,894 $ 6,297,223 $ 6,121,405
Total capital, at period end $31,063,625 $29,820,080 $28,655,969 $27,566,286 $25,768,270
Book value per common share, at period end $ 34.95 $ 33.84 $ 32.34 $ 32.57 $ 31.94
Other Data (in millions, except share and employee data)
- --------------------------------------------------------
Margin debt balances, at period end $ 34,600 $ 34,300 $ 34,600 $ 42,200 $ 37,600
Margin debt balances, average for period $ 35,100 $ 32,500 $ 38,300 $ 37,800 $ 42,000
Customer short balances, at period end $ 54,500 $ 55,000 $ 53,000 $ 61,400 $ 53,800
Customer short balances, average for period $ 47,300 $ 45,200 $ 49,800 $ 50,600 $ 55,000
Stock borrowed, at period end $ 37,300 $ 38,700 $ 39,300 $ 45,900 $ 41,400
Stock borrowed, average for period $ 45,600 $ 43,500 $ 46,100 $ 45,400 $ 49,300
Free credit balances, at period end $ 17,900 $ 18,100 $ 20,300 $ 15,900 $ 17,300
Free credit balances, average for period $ 19,600 $ 21,400 $ 19,700 $ 17,900 $ 18,300
Assets under management, at period end $ 25,800 $ 24,200 $ 23,500 $ 22,600 $ 21,500
Employees, at period end 10,341 10,452 11,147 10,855 11,298
Common shares and common share equivalents outstanding,
at period end 147,040,102 146,465,210 149,669,365 156,485,942 159,125,959
Weighted average common and common equivalent shares
outstanding:
Basic 134,793,949 136,671,817 140,331,572 145,455,590 149,080,028
Diluted 148,115,050 145,040,061 149,056,301 154,825,604 158,617,123
(1) Represents net income reduced for preferred stock dividends and increased
for costs related to the CAP Plan. For earnings per share, the costs related to
the CAP Plan (net of tax) are added back as the shares related to the CAP Plan
are included in weighted average shares outstanding.
(2) After change in accounting principle.
(3) Represents the ratio of income before both CAP Plan costs and provision for
income taxes to revenues, net of interest expense.
(4) Represents the ratio of income before provision for income taxes to
revenues, net of interest expense.
(5) Represents the ratio of net income to revenues, net of interest expense.
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