Morgan Stanley beats by $0.35, beats on revs (86.94)
- Reports Q1 (Mar) earnings of $2.02 per share, $0.35 better than the FactSet Consensus of $1.67; revenues rose 4.3% year/year to $15.14 bln vs the $14.42 bln FactSet Consensus.
- As a result of strong net new asset growth, the Firm has reached $7 trillion of client assets across Wealth and Investment Management. Institutional Securities also saw strength across the markets and underwriting businesses. Co says its Morgan Stanley Integrated Firm model is delivering durable results.
- Institutional Securities reported net revenues of $7.0 billion compared with $6.8 billion a year ago. Investment Banking revenues up 16% from a year ago: Advisory revenues decreased from a year ago on lower completed M&A transactions. Equity underwriting revenues increased significantly from a year ago reflecting higher revenues from IPOs and follow-ons. Fixed income underwriting revenues increased from a year ago primarily driven by higher bond issuances.
- Wealth Management reported net revenues of $6.9 billion in the current quarter compared with $6.6 billion a year ago. Net new assets for the quarter were $95 billion of which a little more than half represented inflows from our family office offering.
- Investment Management net revenues were $1.4 billion compared with $1.3 billion a year ago.
- Provision for credit losses decreased on improvements in the macroeconomic outlook from a year ago.