Bear Stearns Reports Third Quarter Financial Results

Thursday September 20, 8:28 am ET
Equity Franchise Delivers Strong Quarterly Performance
Institutional Equities Net Revenues Up 53% Record Global Clearing Net Revenues Up 30% Private Client Services Net Revenues Up 15%
Share Repurchase Authorization Increased to $2.5 Billion Including $1.0 Billion for Corporate Share Buyback

NEW YORK--(BUSINESS WIRE)--The Bear Stearns Companies Inc. (NYSE:BSC - News) today reported earnings per share (diluted) of $1.16 for the third quarter ended August 31, 2007, down 62% from $3.02 per share for the third quarter of 2006. Net income for the third quarter of 2007 was $171.3 million, down 61% from $438 million for the third quarter of 2006. Net revenues were $1.3 billion for the third quarter, down 38% from $2.1 billion for the third quarter of 2006.
The annualized return on common stockholders' equity for the third quarter of 2007 was 5.3%, and 13.7% for the 12-month period ended August 31, 2007. Third quarter results include approximately $200 million in losses and expenses related to the BSAM High-Grade hedge funds.

"The third quarter was characterized by extremely difficult securitization markets and high volatility levels across asset classes. While our fixed income results clearly reflect these market conditions, we reported solid revenues in Investment Banking and record revenues in Global Equities and Global Clearing Services," said James E. Cayne, chairman and chief executive officer. "I am confident in the underlying strength of our business and proud of the effort and determination displayed by our employees during these challenging times."

A brief discussion of the firm's business segments follows:

CAPITAL MARKETS

Net revenues for the Capital Markets segment were $1.0 billion for the quarter ended August 31, 2007, down 36% from $1.6 billion for the third quarter of 2006.

Institutional Equities net revenues were a record $719 million for the 2007 third quarter, a 53% increase from $471 million for the comparable prior-year quarter. This strong performance was driven by record results in structured equity products and robust international sales and trading net revenues.
Fixed Income net revenues were $118 million for the 2007 third quarter, down 88% from $945 million reported for the quarter ended August 31, 2006. Market conditions in both the mortgage and credit businesses were extremely challenging this quarter. A general re-pricing of risk in the market led to significant reductions in both mortgage and credit-related revenues as volumes decreased while asset values declined.
Investment Banking net revenues were $211 million for the quarter ended August 31, 2007, down 9% from $232 million for the year-ago third quarter. Merger and acquisition advisory fees increased as a number of announced transactions were completed during the quarter. Total underwriting net revenues were flat as increased equity underwriting revenues were offset by lower fixed income underwriting revenues. Merchant Banking revenues decreased during the quarter due to changes in mark-to-market values of several portfolio companies.
GLOBAL CLEARING SERVICES

Net revenues for Global Clearing Services were a record $332 million for the quarter ended August 31, 2007, up 30% from $255 million for the third quarter of 2006. Higher average customer margin debt and average customer short balances resulted in increased net interest revenues. Average customer margin debt balances were $102.2 billion during the quarter ended August 31, 2007, up 49% from $68.8 billion in the comparable quarter of fiscal 2006. Customer short balances averaged $102.2 billion for the third quarter of 2007, compared with $82.1 billion for the third quarter of 2006.

WEALTH MANAGEMENT

Wealth Management net revenues for the quarter ended August 31, 2007 were a negative $38 million compared with $233 million for the quarter ended August 31, 2006.

Private Client Services net revenues were $148 million in the third quarter of 2007, up 15% from $128 million in the prior-year quarter. Increased client activity levels driven by market volatility and the continued growth in fee-based assets drove the increase in net revenues for the 2007 third quarter.
Asset Management net revenues were a negative $186 million for the third quarter of 2007, compared with $105 million in the prior-year quarter. Included in the quarter's results is a loss of approximately $200 million relating to the BSAM High-Grade hedge funds. The negative impact included the reversal of accrued performance fees, the write down of hedge fund investments and receivables, and lower management fees related to proprietary hedge fund products. Assets under management increased 15% to $57.8 billion at quarter end, up from $50.2 billion at August 31, 2006.
EXPENSES

Compensation as a percentage of net revenues was 49.9% for the third quarter of 2007, versus 48.1% in the quarter ended August 31, 2006. Compensation as a percentage of net revenues for the nine months ended August 31, 2007 was 49.0% versus 48.3% for the nine months ended August 31, 2006.
Non-compensation expenses were $492 million for the quarter ended August 31, 2007, an increase of 13% from $437 million for the comparable prior-year period. The increase is primarily related to occupancy fees, higher communications and technology costs associated with additional headcount as well as higher professional fees.
The third quarter 2007 pre-tax profit margin was 13.1%, compared with 31.3% for the third quarter of 2006.

As of August 31, 2007, total capital, including stockholders' equity and long-term borrowings, was $78.2 billion. Book value as of August 31, 2007 was $91.82 per share, based on 144.6 million shares outstanding, primarily reflecting open-market stock repurchases during the quarter.

Share Repurchase Authorization

The Board of Directors approved an amendment to the company's share repurchase program authorizing the purchase of up to $2.5 billion in aggregate cost of common stock. This amendment supercedes the previous $2.0 billion authorization, under which the company had acquired approximately $1.3 billion of common stock. The share repurchase program will be used both to acquire shares of common stock for the company's employee stock award plans and for up to $1.0 billion in corporate share repurchases. Purchases may be made in the open market or through privately negotiated transactions in 2007 or beyond.

Quarterly Common Stock Cash Dividend Declared

The Board of Directors of The Bear Stearns Companies Inc. declared a regular quarterly cash dividend of 32 cents per share on the outstanding shares of common stock payable October 26, 2007 to stockholders of record on October 16, 2007.

Quarterly Preferred Stock Cash Dividend Declared

The Board of Directors of The Bear Stearns Companies Inc. declared the following regular quarterly dividends: (i) a cash dividend of $3.075 per share on the outstanding shares of 6.15% Cumulative Preferred Stock, Series E (which is equivalent to 76.875 cents per related depositary share); (ii) a cash dividend of $2.86 per share on the outstanding shares of 5.72% Cumulative Preferred Stock, Series F (which is equivalent to 71.50 cents per related depositary share); and (iii) a cash dividend of $2.745 per share on the outstanding shares of 5.49% Cumulative Preferred Stock, Series G (which is equivalent to 68.625 cents per related depositary share); all payable October 15, 2007 to stockholders of record on September 28, 2007.

About Bear Stearns

Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC - News) is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The Company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. Headquartered in New York City, the company has approximately 15,000 employees worldwide. For additional information about Bear Stearns, please visit the firm's Web site at www.bearstearns.com.

Certain statements contained in this discussion are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those discussed in the forward-looking statements. For a discussion of the risks and uncertainties that may affect the Company's future results, please see "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Management" in the Company's 2006 Annual Report to Stockholders, and similar sections of the Company's quarterly reports on Form 10-Q, which have been filed with the Securities and Exchange Commission.

Conference Call

A conference call to discuss the Company's results will be held today at 10:00 a.m. (ET). The call will be open to the public. Those wishing to listen to the conference call should dial 1-800-374-2412 (or 1-706-634-7253 for international callers) at least 10 minutes prior to the commencement of the call to ensure connection. The conference call will also be accessible through the internet at http://www.bearstearns.com. For those unable to listen to the live broadcast of the call, a replay will be available beginning at approximately 1:00 p.m. (ET) on the company's Web site or by dialing 1-800-642-1687 (or 1-706-645-9291 for international callers). The passcode for the replay is 15655057. The replay will be available until midnight on Friday, October 5, 2007. If you have any questions on how to obtain access to the conference call, please contact please contact Anthea Zeimann by telephone at 1-212-272-4417 or via e-mail at azeimann@bear.com.

Investor Meeting

The company will host a half-day investor meeting on Thursday, October 4, 2007, at which Bear Stearns' senior executives will discuss the firm's lines of business. The presentation will be available on the firm's web site at http://www.bearstearns.com.

THE BEAR STEARNS COMPANIES INC.
SEGMENT DATA
----------------------------------------------------------------------
(UNAUDITED)
----------------------------------------------------------------------

Three Months Ended
-----------------------------------
August 31, August 31, May 31,
2007 2006 2007
----------- ----------- -----------
(In thousands)
NET REVENUES

Capital Markets
Institutional Equities $ 718,994 $ 471,006 $ 542,685
Fixed Income 117,563 944,974 962,287
Investment Banking 211,227 231,501 356,861
----------- ----------- -----------
Total Capital Markets 1,047,784 1,647,481 1,861,833

Global Clearing Services 331,937 255,407 316,785

Wealth Management
Private Client
Services(1) 147,500 128,089 157,266
Asset Management (185,812) 104,587 184,114
----------- ----------- -----------
Total Wealth Management (38,312) 232,676 341,380

Other(2) (10,660) (6,429) (8,022)
----------- ----------- -----------

Total net revenues $1,330,749 $2,129,135 $2,511,976
=========== =========== ===========

PRE-TAX INCOME

Capital Markets $ 241,931 $ 580,234 $ 376,927
Global Clearing Services 153,412 95,258 154,751
Wealth Management (226,511) 18,018 56,465
Other(3) 5,994 (26,272) (34,486)
----------- ----------- -----------

Total pre-tax income $ 174,826 $ 667,238 $ 553,657
=========== =========== ===========

(1) Private Client Services
Detail:
Gross Revenues, before
transfer to
Capital Markets Segment $ 168,486 $ 149,189 $ 185,082
Revenue transferred to
Capital Markets Segment (20,986) (21,100) (27,816)
----------- ----------- -----------
Private Client
Services net
revenues $ 147,500 $ 128,089 $ 157,266
=========== =========== ===========

% Change From
--------------------
August 31, May 31,
2006 2007
------------ -------

NET REVENUES

Capital Markets
Institutional Equities 52.7% 32.5%
Fixed Income (87.6%) (87.8%)
Investment Banking (8.8%) (40.8%)
Total Capital Markets (36.4%) (43.7%)

Global Clearing Services 30.0% 4.8%

Wealth Management
Private Client Services(1) 15.2% (6.2%)
Asset Management nm nm
Total Wealth Management nm nm

Other(2) (65.8%) (32.9%)

Total net revenues (37.5%) (47.0%)

PRE-TAX INCOME

Capital Markets (58.3%) (35.8%)
Global Clearing Services 61.0% (0.9%)
Wealth Management nm nm
Other(3) nm nm

Total pre-tax income (73.8%) (68.4%)

(1) Private Client Services Detail:
Gross Revenues, before transfer to
Capital Markets Segment
Revenue transferred to
Capital Markets Segment
Private Client Services net
revenues

Nine Months Ended % Change
----------------------- ----------
August 31, August 31,
2007 2006
----------- -----------
(In thousands)
NET REVENUES

Capital Markets
Institutional Equities $1,774,332 $1,531,395 15.9%
Fixed Income 2,229,202 3,074,649 (27.5%)
Investment Banking 871,197 805,310 8.2%
----------- -----------
Total Capital Markets 4,874,731 5,411,354 (9.9%)

Global Clearing Services 924,280 806,003 14.7%

Wealth Management
Private Client Services(1) 440,919 387,759 13.7%
Asset Management 117,461 222,662 (47.2%)
----------- -----------
Total Wealth Management 558,380 610,421 (8.5%)

Other(2) (32,894) (13,998) (135.0%)
----------- -----------

Total net revenues $6,324,497 $6,813,780 (7.2%)
=========== ===========

PRE-TAX INCOME

Capital Markets $1,355,169 $1,991,952 (32.0%)
Global Clearing Services 420,963 356,528 18.1%
Wealth Management (126,293) 38,003 nm
Other(3) (86,150) (132,693) 35.1%
----------- -----------

Total pre-tax income $1,563,689 $2,253,790 (30.6%)
=========== ===========

(1) Private Client Services Detail:
Gross Revenues, before
transfer to
Capital Markets Segment $ 519,157 $ 457,268
Revenue transferred to
Capital Markets Segment (78,238) (69,509)
----------- -----------
Private Client
Services net
revenues $ 440,919 $ 387,759
=========== ===========

(2) Includes consolidation and elimination entries.
(3) Includes certain legal costs and costs related to the Capital
Accumulation Plan for Senior Managing Directors ("CAP Plan").
nm - not meaningful

Note: Certain prior period items have been reclassified to conform to
the current period's presentation.

THE BEAR STEARNS COMPANIES INC.
----------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
----------------------------------------------------------------------
(UNAUDITED)
----------------------------------------------------------------------

Three Months Ended
--------------------------------------
August 31, August 31, May 31, 2007
2007 2006

------------ ------------ ------------
(In thousands, except share and per
share data)

REVENUES
Commissions $ 354,330 $ 280,033 $ 305,654
Principal transactions 300,675 1,093,997 1,222,964
Investment banking 277,046 283,507 404,271
Interest and dividends 3,368,564 2,322,992 2,806,103
Asset management and other
income 39,226 155,158 236,810
------------ ------------ ------------
Total revenues 4,339,841 4,135,687 4,975,802
Interest expense 3,009,092 2,006,552 2,463,826
------------ ------------ ------------
Revenues, net of interest
expense 1,330,749 2,129,135 2,511,976
------------ ------------ ------------

NON-INTEREST EXPENSES
Employee compensation and
benefits 663,506 1,024,748 1,231,403
Floor brokerage, exchange
and clearance fees 79,515 58,621 63,907
Communications and
technology 150,833 126,938 142,850
Occupancy 69,456 52,976 63,870
Advertising and market
development 49,408 38,243 48,756
Professional fees 91,018 78,110 89,297
Impairment of goodwill and
specialist rights - - 227,457
Other expenses 52,187 82,261 90,779
------------ ------------ ------------
Total non-interest
expenses 1,155,923 1,461,897 1,958,319
------------ ------------ ------------

Income before provision for
income taxes 174,826 667,238 553,657
Provision for income taxes 3,528 229,682 191,933
------------ ------------ ------------

Net income $ 171,298 $ 437,556 $ 361,724
Preferred stock dividends 5,201 5,316 5,257
------------ ------------ ------------

Net income applicable to
common shares $ 166,097 $ 432,240 $ 356,467
============ ============ ============

Adjusted net income used for
diluted earnings per share
(1) $ 168,246 $ 449,118 $ 374,603
============ ============ ============

Basic earnings per share $ 1.30 $ 3.34 $ 2.78
============ ============ ============
Diluted earnings per share $ 1.16 $ 3.02 $ 2.52
============ ============ ============

Weighted average common
shares outstanding:
Basic 128,949,234 132,086,016 131,684,419
============ ============ ============
Diluted 145,105,029 148,899,406 148,745,798
============ ============ ============

Cash dividends declared per
common share $ 0.32 $ 0.28 $ 0.32
============ ============ ============

% Change From
-----------------------------------

August 31, 2006 May 31, 2007
----------------- -----------------

REVENUES
Commissions 26.5% 15.9%
Principal transactions (72.5%) (75.4%)
Investment banking (2.3%) (31.5%)
Interest and dividends 45.0% 20.0%
Asset management and other
income (74.7%) (83.4%)
Total revenues 4.9% (12.8%)
Interest expense 50.0% 22.1%
Revenues, net of interest
expense (37.5%) (47.0%)

NON-INTEREST EXPENSES
Employee compensation and
benefits (35.3%) (46.1%)
Floor brokerage, exchange
and clearance fees 35.6% 24.4%
Communications and
technology 18.8% 5.6%
Occupancy 31.1% 8.7%
Advertising and market
development 29.2% 1.3%
Professional fees 16.5% 1.9%
Impairment of goodwill and
specialist rights nm (100.0%)
Other expenses (36.6%) (42.5%)
Total non-interest
expenses (20.9%) (41.0%)

Income before provision for
income taxes (73.8%) (68.4%)
Provision for income taxes (98.5%) (98.2%)

Net income (60.9%) (52.6%)
Preferred stock dividends (2.2%) (1.1%)

Net income applicable to
common shares (61.6%) (53.4%)

Adjusted net income used for
diluted earnings per share
(1) (62.5%) (55.1%)

Basic earnings per share (61.1%) (53.2%)
Diluted earnings per share (61.6%) (54.0%)

Weighted average common
shares outstanding:
Basic
Diluted

Cash dividends declared per
common share

nm - not meaningful

Nine Months Ended % Change
------------------------- --------
August 31, August 31,
2007 2006
------------ ------------
(In thousands, except
share and per share
data)

REVENUES
Commissions $ 940,629 $ 871,355 8.0%
Principal transactions 2,866,016 3,736,907 (23.3%)
Investment banking 1,031,496 939,510 9.8%
Interest and dividends 8,831,860 6,157,857 43.4%
Asset management and other income 443,381 372,225 19.1%
------------ ------------
Total revenues 14,113,382 12,077,854 16.9%
Interest expense 7,788,885 5,264,074 48.0%
------------ ------------
Revenues, net of interest
expense 6,324,497 6,813,780 (7.2%)
------------ ------------

NON-INTEREST EXPENSES
Employee compensation and
benefits 3,099,003 3,291,814 (5.9%)
Floor brokerage, exchange and
clearance fees 199,507 168,485 18.4%
Communications and technology 421,591 349,141 20.8%
Occupancy 190,071 143,025 32.9%
Advertising and market
development 135,237 108,009 25.2%
Professional fees 252,181 197,451 27.7%
Impairment of goodwill and nm
specialist rights 227,457 -
Other expenses 235,761 302,065 (22.0%)
------------ ------------
Total non-interest expenses 4,760,808 4,559,990 4.4%
------------ ------------

Income before provision for
income taxes 1,563,689 2,253,790 (30.6%)
Provision for income taxes 476,926 762,745 (37.5%)
------------ ------------

Net income $ 1,086,763 $ 1,491,045 (27.1%)
Preferred stock dividends 15,715 16,106 (2.4%)
------------ ------------

Net income applicable to common
shares $ 1,071,048 $ 1,474,939 (27.4%)
============ ============

Adjusted net income used for
diluted earnings per share (1) $ 1,115,038 $ 1,536,683 (27.4%)
============ ============

Basic earnings per share $ 8.35 $ 11.38 (26.6%)
============ ============
Diluted earnings per share $ 7.54 $ 10.28 (26.7%)
============ ============

Weighted average common shares
outstanding:
Basic 131,286,671 132,539,603
============ ============
Diluted 147,901,698 149,484,747
============ ============

Cash dividends declared per
common share $ 0.96 $ 0.84
============ ============

nm - not meaningful

THE BEAR STEARNS COMPANIES INC.
----------------------------------------------------------------------
SELECTED FINANCIAL INFORMATION
----------------------------------------------------------------------
(UNAUDITED)
----------------------------------------------------------------------

Three Months Ended
----------------------------------------
August 31, May 31, February 28,
2007 2007 2007
----------------------------------------
(In thousands, except common share data
and other data)

Results
------------------
Revenues, net of
interest expense $ 1,330,749 $ 2,511,976 $ 2,481,772
Net income $ 171,298 $ 361,724 $ 553,741
Net income
applicable to
common shares $ 166,097 $ 356,467 $ 548,484
Adjusted net
income used for
diluted earnings
per share (1) $ 168,246 $ 374,603 $ 572,189

Financial Position
------------------
Stockholders'
equity, at period
end $ 13,000,458 $ 13,308,105 $ 13,273,933
Total capital, at
period end (2) $ 78,151,447 $ 75,098,379 $ 71,768,406

Common Share Data
------------------
Basic earnings per
share $ 1.30 $ 2.78 $ 4.23
Diluted earnings
per share $ 1.16 $ 2.52 $ 3.82
Book value per
common share, at
period end $ 91.82 $ 92.50 $ 90.57
Weighted average
common shares
outstanding:
Basic 128,949,234 131,684,419 133,094,747
Diluted 145,105,029 148,745,798 149,722,654
Common shares
outstanding, at
period end (3) 144,582,401 144,748,090 145,129,095

Financial Ratios
------------------
Return on average
common equity
(annualized) 5.3% 11.6% 18.3%
Adjusted pre-tax
profit margin (4) 13.4% 23.3% 35.3%
Pre-tax profit
margin (5) 13.1% 22.0% 33.7%
After-tax profit
margin (6) 12.9% 14.4% 22.3%
Compensation &
benefits /
Revenues, net of
interest expense 49.9% 49.0% 48.5%
Non-compensation /
Revenues, net of
interest expense 37.0% 28.9% 17.8%

Financial Ratios
(pro forma) (7)
------------------
Diluted earnings
per share n/a $ 3.40 n/a
Return on average
common equity
(annualized) n/a 15.6% n/a
Adjusted pre-tax
profit margin (4) n/a 32.4% n/a
Pre-tax profit
margin (5) (8) n/a 30.7% n/a
After-tax profit
margin (6) (8) n/a 19.3% n/a
Non-compensation /
Revenues, net of
interest expense
(8) n/a 20.3% n/a

Other Data (in
billions, except
employees)
------------------
Margin debt
balances, at
period end $ 85.2 $ 108.4 $ 86.6
Margin debt
balances, average
for period $ 102.2 $ 95.4 $ 81.3
Customer short
balances, at
period end $ 81.9 $ 109.0 $ 95.1
Customer short
balances, average
for period $ 102.2 $ 101.9 $ 94.0
Securities
borrowed, at
period end $ 59.5 $ 65.4 $ 59.4
Securities
borrowed, average
for period $ 69.7 $ 66.6 $ 59.9
Free credit
balances, at
period end $ 35.8 $ 36.4 $ 37.1
Free credit
balances, average
for period $ 38.4 $ 38.0 $ 33.8
Assets under
management, at
period end $ 57.8 $ 59.8 $ 54.1
Employees, at
period end 15,516 15,120 14,409

n/a - not
applicable

Three Months Ended
----------------------------------------------------
November 30, August 31, May 31, February 28,
2006 2006 2006 2006
----------------------------------------------------
(In thousands, except common share data and other
data)

Results
------------------
Revenues, net of
interest expense $ 2,413,385 $ 2,129,135 $ 2,499,442 $ 2,185,203
Net income $ 562,826 $ 437,556 $ 539,333 $ 514,156
Net income
applicable to
common shares $ 557,569 $ 432,240 $ 533,957 $ 508,742
Adjusted net
income used for
diluted earnings
per share (1) $ 583,844 $ 449,118 $ 558,233 $ 529,332

Financial Position
------------------
Stockholders'
equity, at period
end $ 12,129,384 $ 11,721,947 $ 11,707,594 $ 11,165,592
Total capital, at
period end (2) $ 66,699,300 $ 61,923,345 $ 58,354,738 $ 57,589,034

Common Share Data
------------------
Basic earnings per
share $ 4.42 $ 3.34 $ 4.12 $ 3.92
Diluted earnings
per share $ 4.00 $ 3.02 $ 3.72 $ 3.54
Book value per
common share, at
period end $ 86.39 $ 81.52 $ 79.30 $ 75.46
Weighted average
common shares
outstanding:
Basic 129,182,315 132,086,016 132,810,062 132,738,565
Diluted 145,923,131 148,899,406 149,945,896 149,417,369
Common shares
outstanding, at
period end (3) 145,693,021 146,303,331 147,021,508 145,163,510

Financial Ratios
------------------
Return on average
common equity
(annualized) 20.5% 15.8% 20.1% 20.1%
Adjusted pre-tax
profit margin (4) 38.9% 32.7% 35.1% 36.1%
Pre-tax profit
margin (5) 37.0% 31.3% 33.4% 34.4%
After-tax profit
margin (6) 23.3% 20.6% 21.6% 23.5%
Compensation &
benefits /
Revenues, net of
interest expense 43.6% 48.1% 48.8% 47.9%
Non-compensation /
Revenues, net of
interest expense 19.4% 20.5% 17.8% 17.7%

Financial Ratios
(pro forma) (7)
------------------
Diluted earnings
per share n/a n/a n/a n/a
Return on average
common equity
(annualized) n/a n/a n/a n/a
Adjusted pre-tax
profit margin (4) n/a n/a n/a n/a
Pre-tax profit
margin (5) (8) n/a n/a n/a n/a
After-tax profit
margin (6) (8) n/a n/a n/a n/a
Non-compensation /
Revenues, net of
interest expense
(8) n/a n/a n/a n/a

Other Data (in
billions, except
employees)
------------------
Margin debt
balances, at
period end $ 78.6 $ 68.9 $ 72.7 $ 64.5
Margin debt
balances, average
for period $ 72.0 $ 68.8 $ 68.4 $ 64.5
Customer short
balances, at
period end $ 95.8 $ 85.6 $ 81.7 $ 78.1
Customer short
balances, average
for period $ 90.0 $ 82.1 $ 80.2 $ 78.2
Securities
borrowed, at
period end $ 57.6 $ 53.1 $ 52.1 $ 52.4
Securities
borrowed, average
for period $ 57.6 $ 54.7 $ 54.8 $ 52.9
Free credit
balances, at
period end $ 32.6 $ 36.5 $ 34.1 $ 30.6
Free credit
balances, average
for period $ 34.4 $ 35.9 $ 30.8 $ 29.9
Assets under
management, at
period end $ 52.5 $ 50.2 $ 47.9 $ 45.4
Employees, at
period end 13,566 13,134 12,519 12,061

n/a - not
applicable

(1) Represents net income reduced for preferred stock dividends and
increased for costs related to the CAP Plan and the redemption of
preferred stock.
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 common shares outstanding.
(2) Includes stockholders' equity and long-term borrowings.
(3) Represents shares used to calculate book value per common share.
Common shares outstanding include units issued under certain stock
compensation plans which will be distributed as shares of common
stock.
(4) Represents the ratio of income before both CAP Plan costs and
provision for income taxes to revenues, net of interest expense.
(5) Represents the ratio of income before provision for income taxes
to revenues, net of interest expense.
(6) Represents the ratio of net income to revenues, net of interest
expense.
(7) Excludes the effect of the $227.5 million pre-tax non-cash charge
related to the write down of intangible assets, representing goodwill
and specialist rights of Bear Wagner Specialists taken in the quarter
ended May 31, 2007.
(8) In addition to excluding the effect of the non-cash charge related
to the write down of intangible assets, this ratio also excludes the
effect of the reduction of $10 million in costs associated with the
CAP Plan related to the write down of intangible assets.

Contact:
The Bear Stearns Companies Inc.
Elizabeth Ventura, 212-272-9251
or
John Quinn, 212-272-5934

--------------------------------------------------------------------------------
Source: The Bear Stearns Companies Inc.

Most Popular Stories

Events

Sponsored Links

Free Newsletter

Popular Topics

Bear Stearns Reports Third Quarter Financial Results

THE FIERCEMARKETS NETWORK