Morgan Stanley (MS) Earnings Breakdown

by hyousef333

 

– Fourth Quarter Net Revenues of $8.5 Billion and Earnings per Diluted Share of $0.80

– Record Full Year Net Revenues of $40.1 Billion and Net Income of $8.7 Billion; Earnings per Diluted Share of $4.73

– Compensation expense of $3.8 billion decreased from $4.3 billion a year ago on lower net revenues

– Non-compensation expenses of $2.9 billion increased from $2.8 billion a year ago.

– Firm net revenues were negatively impacted by the volatile global market environment.

– “The last 6 weeks of the year were particularly difficult.”

– The annualized return on average common equity was 7.7% and the annualized return on average tangible common equity was 8.8% in the current quarter.

– Institutional Securities reported pre-tax income from continuing operations of $780 million compared with $1.2 billion a year ago

– Investment Banking revenues of $1.4 billion were essentially unchanged from a year ago

– Advisory revenues of $734 million increased from $522 million a year ago on higher levels of completed M&A activity across all regions

– We moved our mortgage origination in-house. We expect to increase our mortgage penetration.

– Sales and Trading net revenues of $2.5 billion decreased from $2.7 billion a year ago

– Investment revenues were negative $52 million compared with positive revenues of $213 million a year ago.

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– Other revenues were negative $13 million compared with positive revenues of $188 million a year ago reflecting losses associated with corporate lending activity in the current quarter.

– Wealth Management reported pre-tax income from continuing operations of $1.0 billion compared with $1.2 billion a year ago

– The quarter’s pre-tax margin was 24.4%

– Asset management revenues of $2.6 billion increased from $2.5 billion a year ago reflecting higher asset levels and positive flows.

– Total client assets were $2.3 trillion and client assets in fee-based accounts were $1.0 trillion at the end of the quarter.

– Wealth Management representatives of 15,694 produced average annualized revenue per representative of $1.1 M in the current quarter.

– Full year net revenues were a record $40.1 billion compared with $37.9 billion a year ago.1

– Total assets under management or supervision at December 31, 2018 were $463 billion compared with $482 billion a year ago

– Expense efficiency ratio for the full year was 72% compared with 73% a year ago

– The return on average common equity was 11.8% and the return on average tangible common equity was 13.5% for the full year ended 2018

– The effective tax rate from continuing operations for the quarter was 16.2% and the full year was 20.9%

– During the quarter ended December 31, 2018, MS repurchased approximately $1.2 billion of its common stock or ~27 million shares.

– The Board of Directors declared a $ 0.30 quarterly dividend per share, payable on 2/15/19 to common shareholders of record on 1/31/19.

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