Morgan Stanley reports Fourth Quarter Net Revenues of $9.0 Billion 

The corporate logo of financial firm Morgan Stanley is pictured on a building in San Diego

Morgan Stanley Reports Fourth Quarter and Full Year 2016:

  • Fourth Quarter Net Revenues of $9.0 Billion and Earnings per Diluted Share of $0.81
  • Fourth Quarter Results Reflect Continued Strength in Sales and Trading and M&A
  • Record Quarterly Wealth Management Net Revenues of $4.0 Billion; Pre-Tax Margin of 22%
  • Full Year Net Revenues of $34.6 Billion and Earnings per Diluted Share of $2.92

Morgan Stanley (NYSE: MS) today reported net revenues of $9.0 billion for the fourth quarter ended December 31, 2016 compared with $7.7 billion a year ago.3 For the current quarter, net income applicable to Morgan Stanley was $1.7 billion, or $0.81 per diluted share, compared with income of $908 million, or $0.39 per diluted share,4 for the same period a year ago.

The prior year quarter included DVA losses of $124 million. Excluding DVA in the prior year quarter, net revenues were $7.9 billion and income applicable to Morgan Stanley was $986 million, or $0.43 per diluted share.

Compensation expense of $4.1 billion increased from $3.7 billion a year ago6 primarily driven by higher revenues. Non-compensation expenses of $2.7 billion compared with $2.6 billion a year ago.

The effective tax rate for the current quarter was 25.2%, which reflected net discrete tax benefits of $135 million primarily related to the remeasurement of reserves and related interest due to new information regarding the status of a multi-year tax authority examination.

The annualized return on average common equity was 8.7 percent in the current quarter.7

Fourth Quarter Business Overview

  • Institutional Securities net revenues were $4.6 billion reflecting strong results across our Sales and Trading franchise and continued strength in M&A advisory.
  • Wealth Management net revenues were $4.0 billion and pre-tax margin was 22%.2 Fee-based asset flows for the quarter were $17.1 billion.
  • Investment Management reported net revenues of $500 million with assets under management or supervision of $417 billion.

James P. Gorman, Chairman and Chief Executive Officer, said, “Our quarterly results reflect consistent strong performance, while our annual results show meaningful earnings growth over 2015. We reported solid results in Sales & Trading and Advisory, and record revenues in Wealth Management, while managing expenses prudently. We are optimistic about opportunities in 2017 and beyond and remain focused on serving our clients and achieving our strategic objectives.”

fourth quarter results

 

Source: Morgan Stanley

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