CEO of Morgan Stanley James Gorman speaks in New York, Could 6, 2014.
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Morgan Stanley on Tuesday posted second-quarter earnings and income that topped analysts’ expectations, helped by document wealth administration outcomes.
This is what the corporate reported:
- Earnings: $1.24 a share, could not examine with $1.15 per share Refinitiv estimate
- Income: $13.46 billion vs. anticipated $13.08 billion
The financial institution mentioned revenue declined 13% to $2.18 billion, or $1.24 a share, on decrease buying and selling outcomes from a yr in the past and a spherical of layoffs that triggered $308 million in severance prices. Income climbed 2% to $13.46 billion.
Below CEO James Gorman, Morgan Stanley’s reliance on wealth administration has helped its regular earnings and boosted its valuation relative to friends. Gorman, who took over the agency in 2010, mentioned in Could he was getting ready to step down inside a yr, setting off a succession race on the Wall Road powerhouse.
“The agency delivered strong ends in a difficult market atmosphere,” Gorman mentioned within the launch. “The quarter began with macroeconomic uncertainties and subdued consumer exercise, however ended with a extra constructive tone.”
Regardless of decrease market ranges that induced some charges to dip from a yr in the past, second quarter wealth administration income rose 16% to $6.66 billion on greater curiosity revenue, exceeding the $6.5 billion estimate of analysts surveyed by FactSet. The division took in $90 billion in web new consumer belongings.
The financial institution’s Wall Road division fared much less nicely. The institutional securities enterprise posted an 8% decline in income to $5.65 billion, pushed by declines in buying and selling. Whereas equities buying and selling generated $2.55 billion in income, topping the $2.37 billion FactSet estimate, mounted revenue produced $1.72 billion, which was nicely beneath the $1.99 billion estimate.
Funding banking income of $1.08 billion was roughly unchanged from a yr in the past and primarily matched analysts’ expectations.
Morgan Stanley shares are up barely this yr, in contrast with the about 20% decline of the KBW Financial institution Index.
On Friday, JPMorgan Chase, Citigroup and Wells Fargo every posted earnings that topped analysts’ expectations amid greater rates of interest. Goldman Sachs wraps up huge financial institution earnings Wednesday.
This story is growing. Please verify again for updates.