Morgan Stanley reported net revenues of $8.9 billion for the third quarter
Morgan Stanley has issued a press release to inform regarding its Third Quarter 2016 results.
- Net Revenues of $8.9 Billion and Earnings per Diluted Share of $0.81
- Strong Performance across Sales & Trading
- Investment Banking Ranked #1 in Global IPOs; #2 in Global Announced, Global Completed M&A and Global Equity
- Wealth Management Revenues of $3.9 Billion and Pre-Tax Margin of 23%
Morgan Stanley (NYSE: MS) on October 19, reported net revenues of $8.9 billion for the third quarter ended September 30, 2016 compared with $7.8 billion a year ago. For the current quarter, net income applicable to Morgan Stanley was $1.6 billion, or $0.81 per diluted share,5 compared with income of $1.0 billion, or $0.48 per diluted share, for the same period a year ago.
The prior year quarter included DVA revenues of $435 million. Excluding DVA in the prior year quarter, net revenues were $7.3 billion and income applicable to Morgan Stanley was $740 million, or $0.34 per diluted share.
Compensation expense of $4.1 billion increased from $3.4 billion a year ago primarily driven by higher revenues. Non compensation expenses of $2.4 billion decreased from $2.9 billion a year ago reflecting lower litigation costs and continued execution of the Firm’s expense management initiatives.
The annualized return on average common equity was 8.7 percent in the current quarter.
Business Overview
- Institutional Securities net revenues were $4.6 billion reflecting strong performance across our sales and trading franchise, continued strength in M&A advisory and subdued underwriting.
- Wealth Management net revenues were $3.9 billion and pre-tax margin was 23%.3 Fee-based asset flows for the quarter were $13.5 billion.
- Investment Management reported net revenues of $552 million with assets under management or supervision of $417 billion.
James P. Gorman, Chairman and Chief Executive Officer, said, “This quarter we saw record revenues in Wealth Management and a strong performance in our Sales and Trading business. While the environment was more challenging for our equity underwriting and asset management businesses, our expense initiatives remain on track. Overall the results reflect steady progress against our long term strategic goals.”
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To read the Full Press Release of Morgan Stanley’s Third Quarter 2016 Results, please click HERE
Source: Morgan Stanley
