TOTAL PRETAX EARNINGS 2002
2002 estimates: (up 5%) $3.9 BILLION
TOTAL NET REVENUES 2002
2002 estimates: (up 1.25%) $16 BILLION
19% of 2002 Pretax Earnings
Net Revenues: $3.55 BILLION
Pretax Earnings: $745.5 MILLION
The dearth of M&A and IPO business will squeeze pretax earnings. Equity underwriting may rise modestly in the second half, but not enough to offset a drop in debt underwriting. Overall, revenues may fall 7%.
TRADING, PRINCIPAL INVESTMENTS
26% of 2002 Pretax Earnings
Net Revenues: $6.65 BILLION
Pretax Earnings: $1 BILLION
With interest-rate cuts nearing an end, fixed-income trading revenues, which rose nearly 35% last year, are expected to fall and equity trading to sputter. But last year's $621 million loss in private equity isn't likely to be repeated, allowing the sector to eke out a small profit.
ASSET MANAGEMENT & SECURITIES
54% of 2002 Pretax Earnings
Net Revenues: $5.83 BILLION
Pretax Earnings: $2.1 BILLION
Asset management attracted $67 billion in net new money last year. But if equity markets remain rocky, asset growth is likely to be modest this year.
Data: Putnam Lovell Securities Inc.