第一季度投资银行与资本市场报告

TRADING VOLUMES INCREASED IN FIRST QUARTER 2004

Corporate Bond OriginationM&A Advisory(1)

$B150$B

60010040050200001Q013Q011Q023Q021Q033Q031Q041Q013Q011Q023Q021Q033Q031Q04US Bond Trading(2)

Equity Trading

$B1000$Tr10800860064004200Asia20US01Q013Q011Q023Q021Q033Q031Q04Europe1Q013Q011Q023Q021Q033Q031Q04(1)Based on effective transactions(2)Daily average trading volumes for treasuries, agencies, asset-/mortgage-backed securities (ABS/MBS), and corporate bondsSources:Dealogic;SDC;FIBV; Federal Reserve Bank of New York; BCGanalysis

Q1 2004 Market Report-BR-TM-NYC-24May04.ppt

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LEADING INVESTMENT BANKS PRODUCED RECORD RESULTS IN THE

FIRST QUARTER 2004

Q1/2004 versus Q4/2003

50%Pre-tax profitmargin (%)CitiML40%BSJPMC MSLBQ1/04 %?: 34.9%3.2+UBSQ4/03 ?30%GS?: 32.7?Q1/0420%CSFBQ4/0310%0.51.01.52.02.53.03.54.04.55.0?+36.5% Revenues($B)Note:?calculated on a revenue-weighted basis; operating revenue for investment banking and institutional sales and tradingSources: Company reports, BCG analysisQ1 2004 Market Report-BR-TM-NYC-24May04.ppt

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REVENUES WERE ALSO SIGNIFICANTLY HIGHER THAN IN

THE FIRST QUARTER 2003

Q1/2004 versus Q1/2003

Pre-tax profit 50%margin (%)

CitiJPMC40%BSQ1/04 %8?: 34.9%

.3+?LBMLQ1/03 30%MSGS?: 31.1%

DBUBSQ1/0420%CSFBQ1/0310%0.51.01.52.02.53.03.54.04.55.0Revenues

?+25.6%

($B)

Note: ?calculated on a revenue weighted basis; operating revenue for investment banking and institutional sales and tradingSource: Company reports; BCG analysis

Q1 2004 Market Report-BR-TM-NYC-24May04.ppt

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TRADING REVENUES IMPROVED BY 50 PERCENT

Accounting For Over 80 Percent Of Revenues

Corporate Finance/Advisory Revenues 1Q04 versus 4Q0330?&A revenue aspercentageof total25%revenues1Q0420%Trading Revenues1Q04 versus 4Q03Tradingrevenue aspercentageof totalrevenues1Q0495??UBS85%MSBSCSFBLBMLJPMCGSCitiBSLB80%JPMC?: 80.3%MSCitiGS10%?: 18.6% UBS75%CSFB70%ML5%0.2DB65%0.51.01.52.02.53.03.54.0?+50.5% Revenues($B)1Q044Q030.40.60.81.01.2?-1.4% Revenues($B)Note:Trading and corporate finance revenues don‘t add up to 100 percent because of “other”revenueSources:Company reports; BCGanalysisQ1 2004 Market Report-BR-TM-NYC-24May04.ppt

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BANKS INCREASED MARKET RISK WITHIN THE LAST 12 MONTHS

Q1/03 Q1/04?: 43.7x ?: 37.1xTrading4.0Rev/VAR

Rev/VAR

Revenues

($B)

BrokerGS3.5CitiDB3.0UBS2.5MSJPMC2.0LBMLCSFB1.5BS1.00.5Trader0.00255075100125150Trading

Value-At-Risk($M)

Note:We normalized reported VAR risk numbers to 99% confidence intervals over a 1 day observation periodSource:Company reports, BCG analysis

Q1 2004 Market Report-BR-TM-NYC-24May04.ppt

Q1/04Q1/03-9-