Morgan Stanley beats by $0.39, beats on revs, Investment Banking revenue up 7.7% (106.58)
- Reports Q1 (Mar) earnings of $2.60 per share, $0.39 better than the FactSet Consensus of $2.21; revenues rose 17.2% year/year to $17.74 bln vs the $16.54 bln FactSet Consensus.
- The firm expense efficiency ratio was 68% for the first quarter.
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Institutional Securities reported record net revenues for the current quarter of $9.0 billion compared with $7.0 billion a year ago. Total investment banking revenue increased 7.7% yr/yr to $1.56 bln.
- Advisory revenue increased 22.1% yr/yr to $563 mln.
- Equity underwriting revenue decreased 25.8% to $319 mln.
- Equity trading net revenue up 45% to $4.13 bln.
- Fixed Income net revenues up 5% to $2.60 bln.
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Wealth Management reported net revenues of $7.3 billion in the current quarter compared with $6.9 billion a year ago. Pre-tax income of $2.0 billion in the current quarter resulted in a pre-tax margin of 26.6%.
- Net revenues up 6% as Asset management revenues increased on higher asset levels and the cumulative impact of positive fee-based flows.
- Investment Management reported net revenues of $1.6 billion compared with $1.4 billion a year ago. Pre-tax income was $323 million compared with $241 million a year ago.
- Ted Pick, Chairman and Chief Executive Officer, said, "The Integrated Firm delivered a very strong quarter with record net revenues of $17.7 billion and EPS of $2.60, and an ROTCE of 23.0%. Institutional Securities strong performance was led by our Markets business with Equity reporting a record $4.1 billion in revenues..."