Morgan Stanley beats by $0.12, beats on revs
Reports Q3 (Sep) earnings of $0.65 per share, excluding DVA (debt valuation adjustment) and a $0.12 tax benefit non-recurring items, $0.12 better than the Capital IQ Consensus of $0.53; GAAP revenues rose 12.0% year/year to $8.91 bln vs the $8.18 bln consensus. Excluding DVA, net revenues for the current quarter were $8.7 billion compared with $8.1 billion a year ago.
- Institutional Securities net revenues excluding DVA were $4.3 billion reflecting continued strength in Investment Banking and Equity sales and trading and improved results in Fixed Income and Commodities sales and trading.
- Wealth Management net revenues were $3.8 billion and pre-tax margin was 22%. Fee based asset flows for the quarter were $6.5 billion, with total client assets above $2.0 trillion at quarter end.
- Investment Management reported net revenues of $655 million with assets under management or supervision of $398 billion.
- At Sept 30, 2014, book value and tangible book value per common share were $34.17 and $29.25,19 respectively, based on ~2.0 billion shares outstanding.