Morgan Stanley (MS) Q3 Profit, Sales Rise on Accounting Gain
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Price: $24.92 -0.8%
Revenue Growth %: +22.6%
Financial Fact:
Earnings (loss) per basic common share: 0.49
Today's EPS Names:
DSX, REDF, REX, More
Revenue Growth %: +22.6%
Financial Fact:
Earnings (loss) per basic common share: 0.49
Today's EPS Names:
DSX, REDF, REX, More
Trade MS Now!
Morgan Stanley (NYSE: MS) rounded-out the third-quarter earnings season for the US banking sector Wednesday morning, demonstrating solid growth to both the top- and bottom-lines. Amid the results, traders are buying Morgan Stanley shares in the pre-market session. The stock last traded at $16.85, up about 1.3 percent.
Net revenue totaled $9.89 billion, up nearly 46 percent from the $6.78 billion in sales during the same quarter last year. Sales were up 6.6 percent from $9.28 billion last quarter. Analysts were expecting sales of $7.42 billion, which is not likely comparable.
Sales to Morgan Stanley's Institutional Securities segment rose a sharp 123 percent from $2.89 billion in the year-ago quarter to $6.45 billion. Sales to the Asset Management unit, meanwhile, tumbled 73 percent to just $215 million. The Global Wealth Management group saw sales rise 5 percent year-over-year to $3.26 billion. Investment banking sales came in at $864 million.
Net income improved markedly from a loss of $91 million last year to $2.15 billion. Morgan Stanley issued a $558 million loss during the second quarter of 2011. On a per-share basis, the bank saw profit surge from just 5 cents in the third quarter of 2010 to $1.14. The bank posted a 38 cent loss last quarter. Results for the current quarter included positive revenue of $3.4 billion, or $1.12 per diluted share related to changes in Morgan Stanley's debt-related credit spreads and other credit factors (Debt Valuation Adjustment, DVA).
James Gorman, Morgan Stanley's President and CEO, said, "Morgan Stanley effectively navigated turbulent markets while consolidating our market share gains with Institutional clients and demonstrating resilience across the Global Wealth Management business as evidenced by record net new assets flows since the formation of MSSB. The Firm delivered progress across many of our key initiatives, increasing client penetration in equity derivatives and interest rate products as well as achieving a significant milestone in the integration of MSSB with the initial roll out of our new technology platform. With our robust liquidity, diverse funding, strong capital and unique strategic partnership with MUFG, Morgan Stanley is well positioned to deliver for clients in the long term."
The bank said it ranked #1 in global completed M&A and #2 in global announced M&A, global IPOs and global Equity.
Morgan Stanley's compensation expense during the quarter totaled $3.7 billion, or about 37 percent of sales. This was flat compared to the same quarter last year.
The firm's Tier 1 capital ratio according to Basel I standards was 15.1 percent; the Tier 1 common ratio was about 13.1 percent.
At September 30, 2011, book value and tangible book value per common share were $31.29 and $27.79,11 respectively, based on approximately 1.9 billion shares outstanding.
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Net revenue totaled $9.89 billion, up nearly 46 percent from the $6.78 billion in sales during the same quarter last year. Sales were up 6.6 percent from $9.28 billion last quarter. Analysts were expecting sales of $7.42 billion, which is not likely comparable.
Sales to Morgan Stanley's Institutional Securities segment rose a sharp 123 percent from $2.89 billion in the year-ago quarter to $6.45 billion. Sales to the Asset Management unit, meanwhile, tumbled 73 percent to just $215 million. The Global Wealth Management group saw sales rise 5 percent year-over-year to $3.26 billion. Investment banking sales came in at $864 million.
Net income improved markedly from a loss of $91 million last year to $2.15 billion. Morgan Stanley issued a $558 million loss during the second quarter of 2011. On a per-share basis, the bank saw profit surge from just 5 cents in the third quarter of 2010 to $1.14. The bank posted a 38 cent loss last quarter. Results for the current quarter included positive revenue of $3.4 billion, or $1.12 per diluted share related to changes in Morgan Stanley's debt-related credit spreads and other credit factors (Debt Valuation Adjustment, DVA).
James Gorman, Morgan Stanley's President and CEO, said, "Morgan Stanley effectively navigated turbulent markets while consolidating our market share gains with Institutional clients and demonstrating resilience across the Global Wealth Management business as evidenced by record net new assets flows since the formation of MSSB. The Firm delivered progress across many of our key initiatives, increasing client penetration in equity derivatives and interest rate products as well as achieving a significant milestone in the integration of MSSB with the initial roll out of our new technology platform. With our robust liquidity, diverse funding, strong capital and unique strategic partnership with MUFG, Morgan Stanley is well positioned to deliver for clients in the long term."
The bank said it ranked #1 in global completed M&A and #2 in global announced M&A, global IPOs and global Equity.
Morgan Stanley's compensation expense during the quarter totaled $3.7 billion, or about 37 percent of sales. This was flat compared to the same quarter last year.
The firm's Tier 1 capital ratio according to Basel I standards was 15.1 percent; the Tier 1 common ratio was about 13.1 percent.
At September 30, 2011, book value and tangible book value per common share were $31.29 and $27.79,11 respectively, based on approximately 1.9 billion shares outstanding.
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