Morgan Stanley beats by $0.06, reports revs in-line (89.70)
- Reports Q4 (Dec) earnings of $1.13 per share, excluding non-recurring items, $0.06 better than the FactSet Consensus of $1.07; revenues rose 1.2% year/year to $12.9 bln vs the $12.77 bln FactSet Consensus.
- Pre-tax income for the fourth quarter excludes $535 million of charges or $0.28 per diluted share1,2: $286 million related to an FDIC special assessment and a $249 million legal charge related to a specific matter.
- Investment Banking revenues up 5% from a year ago
- Equity net revenues were essentially unchanged from a year ago. The absence of markdowns on certain strategic investments versus a year ago were offset by increased funding and liquidity costs.
- Wealth Management net revenues of $6.6 billion in the current quarter were essentially unchanged from a year ago. Pre-tax income of $1.4 billion7 in the current quarter resulted in a pre-tax margin of 21.5%.
- Provision for credit losses increased from a year ago primarily driven by deteriorating conditions in the commercial real estate sector, including provisions for specific commercial real estate loans.