Magazine

Table: 2002 Estimates


TOTAL PRETAX EARNINGS 2002

2002 estimates: (up 5%) $3.9 BILLION

TOTAL NET REVENUES 2002

2002 estimates: (up 1.25%) $16 BILLION

INVESTMENT BANKING

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.


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