2007 FINANCIAL HIGHLIGHTS

In millions, except per common share and selected data. At or for the year ended November 30.
Financial Information 2007 2006 2005 2004 2003
Net revenues $19,257 $17, 583 $14,630 $11,576 $8,647
Net income $4,192 $4,007 $3,260 $2,369 $1,699
Total assets $691,063 $503,545 $410,063 $357,168 $312,061
Long-term borrowings (1) $123,150 $81,178 $53,899 $49,365 $35,885
Total stockholders’ equity $22,490 $19,191 $16,794 $14,920 $13,174
Total long-term capital (2) $145,640 $100,369 $70,693 $64,285 $50,369
Per Common Share Data (3) 2007 2006 2005 2004 2003
Earnings (diluted) $7.26 $6.81 $5.43 $3.95 $3.17
Dividends declared $0.60 $0.48 $0.40 $0.32 $0.24
Book value (4) $39.44 $33.87 $28.75 $24.66 $22.09
Closing stock price $62.63 $73.67 $63.00 $41.89 $36.11
Selected Data 2007 2006 2005 2004 2003
Return on average common stockholders’ equity (5) 20.8% 23.4% 21.6% 17.9% 18.2%
Return on average
tangible common stockholders’ equity (6)		 25.7% 29.1% 27.8% 24.7% 19.2%
Pre-tax margin 31.2% 33.6% 33.0% 30.4% 29.3%
Leverage ratio (7) 30.7x 26.2x 24.4x 23.9x 23.7x
Net leverage ratio (8) 16.1x 14.5x 13.6x 13.9x 15.3x
Weighted average
common shares (diluted)
(in millions) (3)		 568.3 578.4 587.2 581.5 519.7
Employees 28,556 25,936 22,919 19,579 16,188
Assets under management
(in billions)		 $282 $225 $175 $137 $120

(1) Long-term borrowings exclude borrowings with remaining contractual maturities within twelve months of the financial statement date.

(2) Total long-term capital includes long-term borrowings (excluding any borrowings with remaining contractual maturities within one year of the financial statement date) and total stockholders’ equity and, at November 30, 2003 preferred securities subject to mandatory redemption. We believe total long-term capital is useful to investors as a measure of our financial strength.

(3) Common share and per share amounts have been retrospectively adjusted to give effect for the 2-for-1 common stock split, effected in the form of a 100% stock dividend, which became effective April 28, 2006.

(4) The book value per common share calculation includes amortized restricted stock units granted under employee stock award programs, which have been included in total stockholders’ equity.

(5) Return on average common stockholders’ equity is computed by dividing net income applicable to common stock for the period by average common stockholders’ equity. Net income applicable to common stock for the years ended November 2007, 2006, 2005, 2004 and 2003 was, $4.1 billion, $3.9 billion, $3.2 billion, $2.3 billion and $1.6 billion, respectively. Average common stockholders’ equity for the years ended November 30, 2007, 2006, 2005, 2004, and 2003 was $19.8 billion, $16.9 billion, $14.7 billion, $12.8 billion, and $9.1 billion, respectively.

(6) Return on average tangible common stockholders’ equity is computed by dividing net income applicable to common stock for the period by average tangible common stockholders’ equity. Average tangible common stockholders’ equity equals average total common stockholders’ equity less average identifiable intangible assets and goodwill. We believe tangible common stockholders’ equity is a meaningful measure because it reflects the common stockholders’ equity deployed in our businesses. Average identifiable intangible assets and goodwill for the years ended November 30, 2007, 2006, 2005, 2004 and 2003 was $3.8 billion, $3.3 billion, $3.3 billion, $3.5 billion, and $471 million, respectively.

(7) Leverage ratio is defined as total assets divided by total stockholders’ equity.

(8) Net leverage ratio is defined as net assets (total assets excluding: (i) cash and securities segregated and on deposit for regulatory and other purposes; (ii) collateralized lending agreements; and (iii) identifiable intangible assets and goodwill) divided by tangible equity capital. We believe net assets to be a more useful measure of our assets than total assets because it excludes certain low-risk, non-inventory assets. We believe tangible equity capital to be a more meaningful measure of our equity base as it includes instruments we consider to be equity-like due to their subordinated nature, long-term maturity and interest deferral features and excludes assets we do not consider available to support our remaining net assets. These measures may not be comparable to other, similarly titled calculations by other companies as a result of different calculation methodologies. See “Selected Financial Data” for additional information about net assets and tangible equity capital.