Morgan Stanley (NYSE: MS) reported Q1 EPS of $0.55, versus the analyst estimate of $0.47. Revenue for the quarter came in at $7.8 billion versus the consensus estimate of $8.52 billion.

Business Overview

• Institutional Securities net revenues were $3.7 billion reflecting challenging market conditions in Fixed Income & Commodities sales and trading and underwriting, with strength in Equity sales and trading and M&A advisory.
• Wealth Management net revenues were $3.7 billion and pre-tax margin was 21%.3 Results reflect strong growth in net interest income offset by weakness in transactional revenues. Fee based asset flows for the quarter were $5.9 billion.
• Investment Management reported net revenues of $477 million reflecting losses in private equity and real estate and stable asset management fees. Assets under management or supervision were $405 billion at the end of the quarter.

James P. Gorman, Chairman and Chief Executive Officer, said, “The first quarter was characterized by challenging market conditions and muted client activity. Against that backdrop, our businesses delivered stable results. While we see some signs of market recovery, global uncertainties continue to weigh on investor activity. We remain focused on executing against our priorities, helping clients navigate difficult markets while controlling our expenses and managing risk prudently.”

Capital

As of March 31, 2016, the Firm’s Common Equity Tier 1 and Tier 1 risk-based capital ratios under U.S. Basel III Advanced Approach transitional provisions were approximately 15.7% and 17.4%, respectively.5

As of March 31, 2016, the Firm estimates its pro forma fully phased-in Common Equity Tier 1 risk-based capital ratio (under U.S. Basel III Advanced Approach) and pro forma fully phased-in Supplementary Leverage Ratio to be approximately 14.5% and 6.0%, respectively.4,5,6

At March 31, 2016, book value and tangible book value per common share were $35.34 and $30.44,17 respectively, based on approximately 1.9 billion shares outstanding.

For earnings history and earnings-related data on Morgan Stanley (MS) click here.