Proactiveinvestors USA & Canada Morgan Stanley https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Morgan Stanley RSS feed en Thu, 23 May 2019 10:00:56 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Goldman Sachs, Morgan Stanley ride deals to score big 3Q earnings beats ]]> https://www.proactiveinvestors.com/companies/news/207180/goldman-sachs-morgan-stanley-ride-deals-to-score-big-3q-earnings-beats-207180.html Shares of US investment bank Goldman Sachs Group Inc (NYSE:GS) climbed before the opening bell Tuesday after it posted third-quarter earnings that handily beat Wall Street expectations on the back of strong deal making and lower taxes.

Shares in Goldman Sachs climbed 1.2% to $218 in premarket trade.

For the quarter ended June 2018, Goldman Sachs reported earnings of $6.28 per share on revenue of $8.6 billion. That was well above the expectations of analysts who predicted earnings of $5.42 per share on revenue of $8.4 billion. Revenue grew 3.8% on a year-over-year basis.

Investment-banking revenue shot up 10% from a year earlier to $1.98 billion in revenue, exceeding the $1.8 billion estimate, on better-than-expected results in mergers advisory and capital markets underwriting. The business benefited from strong demand for initial public offerings. It's been a bonanza for investment banks like Goldman Sachs and Morgan Stanley (NYSE:MS) as more than 180 companies raised over $50 billion in IPOs in the US in the first three quarters, putting 2018 on track to be the busiest year for new issuance by both measures since 2014, according to Dealogic.

The bank's trading division produced $3.1 billion in revenue, just shy of analysts' $3.16 billion estimate, driven by underperformance in the fixed-income business.

The quarterly results are the last of Lloyd Blankfein’s tenure, which began in 2006 and ended October 1 when David Solomon took over as Goldman’s new boss.

READ: Goldman Sachs's Marcus account proves popular with UK savers

Solomon's main challenge is to make good on a plan to boost revenue by $5 billion by deepening its banking client base and pushing into retail products like personal loans.

Meanwhile, rival Morgan Stanley also reported third quarter earnings that topped analysts’ expectations on both the top and bottom lines on strong investment banking results.

For the quarter ended June 2018, the bank posted earnings of $1.17 per share on revenue of $12.6 billion. The consensus earnings estimate was $1 per share on revenue of $9.5 billion. Revenue grew 16.8% on a year-over-year basis.

The bank said the improved results were boosted by higher IPO revenues and convertible offerings as well as better loan and bond fees. Morgan Stanley’s investment banking division, which includes deal advisory and stock and bond issuance, generated $1.5 billion in revenue compared with the $1.3 billion estimate, from Thomson Reuters. That puts investment banking revenue up more than 15% year over year.

"Despite the seasonal summer slowdown in the third quarter, we reported solid revenue and earnings growth demonstrating the stability of the franchise," said Morgan Stanley CEO James Gorman.

Shares of Morgan Stanley shot up 2.3% to $44.50

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

-- (Updates with Goldman results, Morgan Stanley CEO quotes) --

 

 

 

]]>
Tue, 16 Oct 2018 07:49:00 -0400 https://www.proactiveinvestors.com/companies/news/207180/goldman-sachs-morgan-stanley-ride-deals-to-score-big-3q-earnings-beats-207180.html
<![CDATA[Media files - CryptoCann™ Report: Morgan Stanley may offer Bitcoin swap trading; Anheuser-Busch heir launches cannabis company ]]> https://www.proactiveinvestors.com/companies/stocktube/10469/cryptocann-report-morgan-stanley-may-offer-bitcoin-swap-trading-anheuser-busch-heir-launches-cannabis-company-10469.html Thu, 13 Sep 2018 15:02:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10469/cryptocann-report-morgan-stanley-may-offer-bitcoin-swap-trading-anheuser-busch-heir-launches-cannabis-company-10469.html <![CDATA[News - CryptoCann™ Report: Morgan Stanley may offer Bitcoin swap trading; Anheuser-Busch heir launches cannabis company ]]> https://www.proactiveinvestors.com/companies/news/204864/cryptocann-report-morgan-stanley-may-offer-bitcoin-swap-trading-anheuser-busch-heir-launches-cannabis-company-204864.html While major financial institutions have been hesitant about cryptocurrency, a few have been warming up to the idea of digital assets.

Morgan Stanley (NYSE:MS) is planning to offer trading in derivatives tied to Bitcoin, according to a Bloomberg report.

The Wall Street heavyweight will offer investors the opportunity to deal in contracts to give them “synthetic exposure to the performance of Bitcoin.”

Investors can go long or short using price return swaps with Morgan Stanley charging a spread, or the difference between the bid and the ask price of an asset, for each transaction.

READ: Bitcoin vs Altcoins: Why does bitcoin dominate the crypto market?

Bitcoin swap trading will launch after the completion of an internal approval process.

Some companies remain wary of cryptocurrency but more open to the idea of its underlying blockchain technology.

Distributed ledger technology, like blockchain, could generate US$1 trillion in new trade over the next 10 years, according to a report from the World Economic Forum.

Entitled ‘Trade Tech – A New Age for Trade and Supply Chain Finance’, the report explores the possibilities for blockchain in the global trade finance space.

“Distributed ledger and other technological innovations promise groundbreaking advances in trade and supply chain finance by reducing costs and ease of use,” said the report.

The Cann Report

The date for Canadian recreational legalization is fast-approaching, but the US market is taking baby steps.

The US House Judiciary committee is scheduled to vote on a bill to expand marijuana research opportunities, expanding cannabis production in the process.

The Medical Cannabis Research Act, sponsored by Representative Matt Gaetz (R-FL), would require the federal government to issue more licenses to grow marijuana that would in turn be used in scientific studies.

"The federal government should not stand in the way of collaboration that can help people live better lives,” said Gaetz in an interview with Forbes.

READ: WeedMD exports genetics to Australian medical pot producer

In other US cannabis news, a famous name in the beer world is shifting to cannabis.

Adolphus A. Busch V, the great-great-grandson of the founder of beer giant Anheuser-Busch, is launching a marijuana company in Colorado, as per a Marijuana Business Daily report. 

Known as the ABV Cannabis Co, it will offer disposable vaporizer pens filled with cannabis oil.

The sole investor was Busch’s father Adolphus Busch IV, who invested US$100,000 in his son’s company, as per the report.

ABV will soon offer flower products and has plans to expand to other states. 

 

]]>
Thu, 13 Sep 2018 12:32:00 -0400 https://www.proactiveinvestors.com/companies/news/204864/cryptocann-report-morgan-stanley-may-offer-bitcoin-swap-trading-anheuser-busch-heir-launches-cannabis-company-204864.html
<![CDATA[News - Morgan Stanley restricts coverage of Tesla as controversy swirls around electric-car maker ]]> https://www.proactiveinvestors.com/companies/news/203321/morgan-stanley-restricts-coverage-of-tesla-as-controversy-swirls-around-electric-car-maker-203321.html Brokerage Morgan Stanley announced on Tuesday it has restricted its coverage of CEO Elon Musk's Tesla Inc (NASDAQ:TSLA), which is mired in controversy over its plan to take the company private.

The announcement may be an indication Morgan Stanley is directly involved with Tesla, with its website showing the carmaker was moved to "Not Rated" from "Equal Weight," a report by The Fly.com said. This followed reports that Goldman Sachs dropped its coverage of Tesla before admitting it is now a financial adviser of the company.

Goldman analyst David Tamberrino stated the change was due to the company "acting as a financial advisor in connection with a matter that is fundamental to the reasonable analysis of the rating and price target for this stock," TheFly's report said.

READ: Why Goldman Sachs doesn't think Tesla is the next Dell

Last month, Morgan Stanley analysts led by Adam Jonas rated Tesla with the equivalent of Neutral.

Musk has been besieged since announcing earlier in the month his plan to take the company private. Musk has said the funding for the deal will be done through equity and that the sovereign wealth fund from Saudi Arabia is eager to proceed.

 

 

  

]]>
Tue, 21 Aug 2018 08:44:00 -0400 https://www.proactiveinvestors.com/companies/news/203321/morgan-stanley-restricts-coverage-of-tesla-as-controversy-swirls-around-electric-car-maker-203321.html
<![CDATA[News - Morgan Stanley analysts are bullish on US bank stocks and other financial stocks ]]> https://www.proactiveinvestors.com/companies/news/198711/morgan-stanley-analysts-are-bullish-on-us-bank-stocks-and-other-financial-stocks-198711.html Morgan Stanley analysts are overweight in US financial stocks and banking stocks in particular as interest rate hikes loom and regulatory tailwinds look favorable.

The consensus at the Wall Street bank is that US equities will move in a narrower range and volatility will remain high throughout the rest of the year, according to a new US Equity strategy report.

“We still expect to see further upside for the market before the cycle ends, but this will be on less breadth and will come with higher risk,” the analysts said.

“In this environment, we think stock picking will become more important,” they added.

The analysts remain bullish on financial stocks as their “relative earnings revisions appear to be stabilizing after a decline in the first half of the year”. 

Rising interest rates, expense management and deregulation are all positive factors for bank stocks. Insurers, meanwhile, face more cyclical and structural pressures,  but “select opportunities” exist.  Those asset managers which are focused on growth, cutting costs and developing their platforms and infrastructure should outperform, but Morgan Stanley’s team prefers alternative asset managers and brokers to the traditional ones.

On Morgan Stanley’s list of stock picks are the insurer American International Group (NYSE:AIG) (Price target: US$65) for its clean balance sheet, strong management and focus on underwriting profitability as well as the private equity house Apollo Global Management (NYSE:APO) (PT: US$41) as Morgan Stanley argues that the market is undervaluing Apollo’s growth in “sticky management fee earnings”.

Additional picks by the House of Morgan include JPMorgan Chase & Co (NYSE:JPM) (PT:$135), Visa (NYSE:V)  (PT:$142), Athene (NYSE:ATH) (PT: $62), Bank of the Ozarks (NASDAQ:OZRK) (PT: $62)  and Discovery Financial Services (NYSE:DFS) (PT: $90).

]]>
Tue, 12 Jun 2018 09:32:00 -0400 https://www.proactiveinvestors.com/companies/news/198711/morgan-stanley-analysts-are-bullish-on-us-bank-stocks-and-other-financial-stocks-198711.html
<![CDATA[News - Morgan Stanley tops first-quarter earnings expectations on equity trading ]]> https://www.proactiveinvestors.com/companies/news/195265/morgan-stanley-tops-first-quarter-earnings-expectations-on-equity-trading-195265.html Shares of Morgan Stanley (MS:NYSE) surged before the opening bell Wednesday after it posted strong first-quarter results that topped analysts’ expectations.

The banking giant reported net income of US$1.45 per share vs. US$1.25 expected by Wall Street.

It also posted record revenue of US$11.1bln vs. calls for US$10.36bln as the bank's equity trading unit navigated renewed financial market volatility better than competitors like Goldman Sachs.

Its stock rose 3.1% in Wednesday's pre-market session on the results.

"We delivered very strong results this quarter, with record revenues and net income - and an ROE above our target range," said CEO James Gorman in a release. "Each of our businesses performed well, with significant client engagement across our global franchise, and Sales and Trading a particular highlight in a more active environment."

Morgan Stanley's high performing equity trading desk locked in revenue of US$2.6bln in the period, up 30% from a year ago. The bank said it benefited from "higher levels of client activity" during the quarter.

In comparison, Goldman Sachs Group Inc. (NYSE: GS) posted equity trading sales of US$2.31bln for the first quarter.

 

]]>
Wed, 18 Apr 2018 08:29:00 -0400 https://www.proactiveinvestors.com/companies/news/195265/morgan-stanley-tops-first-quarter-earnings-expectations-on-equity-trading-195265.html
<![CDATA[News - Morgan Stanley's fourth quarter earnings beat forecasts ]]> https://www.proactiveinvestors.com/companies/news/190255/morgan-stanley-s-fourth-quarter-earnings-beat-forecasts-190255.html Morgan Stanley (NYSE:MS) reported fourth quarter earnings that beat forecasts as its wealth management revenue rose to a record.

Earnings per share (EPS) rose to 84 cents in the quarter ended December 31, excluding a US$900mln hit resulting from recent changes to US tax law.

It compared to 74 cents in the year-ago period and analysts’ expectations of 77 cents.

Including a one-off charge of US$1.0bn for the tax changes, EPS was 29 cents.

Revenue rose to US$9.5bn from US$9.0bn a year ago, ahead of estimates of US$9.2bn.

Wealth management revenues rose to a record US$4.4bn from US$4.0bn a year ago while investment banking increased to US$1.4bnb from US$1.3bn.

Looking ahead, the company expects to benefit from Donald Trump’s tax reform, which includes cutting the corporate tax rate to 21% from 35%.

“We enter 2018 with strong momentum aided by rising interest rates, tax reform and an evolving regulatory framework,” said chief executive James Gorman.

Shares climbed 0.62% to US$55.69 each.

]]>
Thu, 18 Jan 2018 15:02:00 -0500 https://www.proactiveinvestors.com/companies/news/190255/morgan-stanley-s-fourth-quarter-earnings-beat-forecasts-190255.html
<![CDATA[News - Morgan Stanley, Bank of New York Mellon, PPG Industries and more - PRE-MARKET ]]> https://www.proactiveinvestors.com/companies/news/190245/morgan-stanley-bank-of-new-york-mellon-ppg-industries-and-more-pre-market-190245.html Big bank Morgan Stanley (NYSE:MS) is in focus ahead of the bell, with shares up 1.63% to US$56.25 as it posted fourth quarter results, which beat analysts' expectations.

The adjusted net income for the three months was US$1.7bn, beating estimates of US$1.43bn, while net revenues were US$9.5bn, beating estimates of US$9.24bn.

 

Goldman Sachs is worth less than Morgan Stanley for first time in decade https://t.co/JxE0qEAiP5 pic.twitter.com/yLBkfoRN5C

— Bloomberg (@business) 18 January 2018

“Over the course of the full year we achieved the strategic objectives outlined two years ago," said  chief executive James Gorman.

US stocks powered to a higher close on Wednesday, and in pre-market, shares were mixed to lower.

Also in focus ahead of the bell was retailer Macy's Inc (NYSE:M), whose shares surged 2.78% to US$26.97.

It came as a regulatory filing showed that Prudential Financial Inc grew its position in the firm by 75.3% in the third quarter.

Fortune 500 group PPG Industries Inc (NYSE:PPG) shed 0.03% to US$114.46 before the bell after it reported its latest quarterly numbers, which showed an EPS (earnings per  share) of US$1.19, which was in line with analysts' estimate of $1.19.

Bank of New York Mellon Corp (NYSE:BK) shed 2.40% after hours.

The group reported a 37% rise in fourth-quarter profit on Thursday, benefiting from a one-time gain of US$427mln from President Trump's tax overhaul.

]]>
Thu, 18 Jan 2018 08:15:00 -0500 https://www.proactiveinvestors.com/companies/news/190245/morgan-stanley-bank-of-new-york-mellon-ppg-industries-and-more-pre-market-190245.html
<![CDATA[News - Morgan Stanley expects to take a US$1.25bn fourth quarter hit from the US tax reform bill ]]> https://www.proactiveinvestors.com/companies/news/189594/morgan-stanley-expects-to-take-a-us125bn-fourth-quarter-hit-from-the-us-tax-reform-bill-189594.html Morgan Stanley (NYSE:MS) said it expects to take a US$1.25bn fourth quarter hit from the US tax reform bill that was signed into law in December.

The Wall Street bank said in a regulatory filing that its net income for the quarter will include a tax provision of that amount, primarily stemming from the re-evaluation of certain net deferred tax assets using the lower tax rate.

Rival Goldman Sachs Group Inc.(NYSE:GS) announced in late December that it estimates the new tax legislation could reduce its fourth quarter earnings by about US$5bn, mainly due to the newly enacted repatriation tax for cash and assets held overseas.

In pre-market New York trading, Morgan Stanley shares edged higher, up 0.1% at US$53.17. 

]]>
Fri, 05 Jan 2018 08:01:00 -0500 https://www.proactiveinvestors.com/companies/news/189594/morgan-stanley-expects-to-take-a-us125bn-fourth-quarter-hit-from-the-us-tax-reform-bill-189594.html
<![CDATA[News - Morgan Stanley beats third quarter earnings forecasts on strong wealth management revenue ]]> https://www.proactiveinvestors.com/companies/news/185728/morgan-stanley-beats-third-quarter-earnings-forecasts-on-strong-wealth-management-revenue-185728.html Morgan Stanley (NYSE:MS) achieved growth in third quarter earnings and revenue ahead of analysts’ expectations, sending its shares higher.  

The bank reported earnings per share of 93 US cents, compared to 81 US cents in the year-ago period and market forecasts for unchanged results.

READ: Morgan Stanley reports growth in both revenues and earnings per share, beating market expectations

Revenue rose to US$9.2bn from US$8.9bn last year, boosted by growth in wealth management. Analysts had expected revenue of US$9.0bn.

Shares rose 1.35% to US$49.60 each in pre-market trading in the US following the results.

Wealth management net revenue gained to US$4.2bn from US$3.8bn, supported by asset management fee revenues and net interest income.

Trading business faces subdued environment

Investment management net revenue edged up to US$675mln from US$552mln and assets under management grew to US$447bn from US$417bn.

Revenue in the institutional securities division increased to US$4.3bn from US$4.5bn as growth in investment banking offset a declines in sales and trading, and fixed income.

“Our third quarter results reflected the stability our wealth management, investment banking and investment management businesses bring when our sales and trading business faces a subdued environment," said Morgan Stanley chairman and chief executive James Gorman.

]]>
Tue, 17 Oct 2017 13:58:00 -0400 https://www.proactiveinvestors.com/companies/news/185728/morgan-stanley-beats-third-quarter-earnings-forecasts-on-strong-wealth-management-revenue-185728.html
<![CDATA[News - Goldman Sachs Group, Morgan Stanley, Harley Davidson and more - PRE-MARKET ]]> https://www.proactiveinvestors.com/companies/news/185722/goldman-sachs-group-morgan-stanley-harley-davidson-and-more-pre-market-185722.html It's big bank Tuesday and Morgan Stanley (NYSE:MS) is in focus in pre-market deals as it posted profit, which beat estimates as its wealth management business boomed.

After hours, shares added 1.25% to stand at US$49.55 each. Earnings per share (EPS) came in at  93 cents a share against 81 cents, which had been projected by analysts.

Revenue for the three months was US$9.197bn against an expected  US$9.015bn.

In other  bank news, Goldman Sachs (NYSE:GS) shares added 1.27% to US$245.48  after hours as its results easily beat expectations.

Total net earnings came in at  US$2.13bn - a near 3% increase, while revenue was US$8.33bn compared to US$7.54bn, which was expected.

From banks to wheels and motorcycle giant Harley Davidson Inc (NYSE:HOG) shares accelerated 0.49% higher to US$46.80 after hours after it reported quarterly earnings at $0.41 per share on revenue of $966.83 million before the opening bell.

Last but not least, pharma and consumer goods giant Johnson & Johnson (NYSE:JNJ) shares gained 1.23% to US$137.7 after it beat third-quarter earnings expectations and raised its full-year outlook.

Net income in the three months fell to US$3.76bn, or $1.37 a share, from US$4.27bn, or US$1.53 a share in the same period a year ago.

businessinsider: Harley-Davidson expects sales to slump as much as 8% this year https://t.co/ZfCXSNZ2SL pic.twitter.com/iIWhAJr3QS

— Investing Insight (@InvestingLatest) 17 October 2017 ]]>
Tue, 17 Oct 2017 08:03:00 -0400 https://www.proactiveinvestors.com/companies/news/185722/goldman-sachs-group-morgan-stanley-harley-davidson-and-more-pre-market-185722.html
<![CDATA[News - Morgan Stanley, Goldman Sachs and Discovery Communications in focus - PRE-MARKET ]]> https://www.proactiveinvestors.com/companies/news/181148/morgan-stanley-goldman-sachs-and-discovery-communications-in-focus-pre-market-181148.html Big banks are back in focus as today is Morgan Stanley's (NYSE:MS) turn to post quarterly numbers, hot on the heels of Goldman Sachs (NYSE:GS) yesterday

Morgan Stanley shares are racing 3.46% higher in pre-market trade as it reported growth in both net revenues and earnings per share in the second quarter, soundly beating market expectations.

The lender said revenues from institutional securities, wealth management, and investment management were all higher than a year ago, despite what CEO James Gorman called a "subdued trading environment."

It comes after yesterday, Goldman said it suffered its worst ever quarter in commodities trading and a challenging quarter in general. The investment bank revealed a 40% plunge in revenue compared with last year from the division that trades commodities, currencies and bonds.

 

Morgan Stanley Triumphs: Posts Higher FICC Revenue Than Goldman Sachs https://t.co/J7jmFnKKxf

— zerohedge (@zerohedge) 19 July 2017

Discovery Communications Inc (NYSE:DISCA) added over 8% in pre-market  as reports emerged that it was in talks to merge with Scripps Networks (NASDAQ:SNI)

 

Both stocks could see movement today. The latter, Scripps, the media giant, saw shares rise 14.5% in pre-market deals.

Cyclacel Pharmaceuticals Inc (NYSE: CYCC) saw shares tank over 26% to $2.15 after a regulatory filing showed the group registering for up to $5.06 mln offering.

Yesterday on Wall Street, the Nasdaq and S&P 500 hit new highs. Today, in futures, the benchmarks are seen trading higher at the open.

]]>
Wed, 19 Jul 2017 08:46:00 -0400 https://www.proactiveinvestors.com/companies/news/181148/morgan-stanley-goldman-sachs-and-discovery-communications-in-focus-pre-market-181148.html
<![CDATA[News - Morgan Stanley reports growth in both revenues and earnings per share, beating market expectations ]]> https://www.proactiveinvestors.com/companies/news/181143/morgan-stanley-reports-growth-in-both-revenues-and-earnings-per-share-beating-market-expectations-181143.html Wall Street investment bank Morgan Stanley (NYSE: MS) reported growth in both net revenues and earnings per share in the second quarter, soundly beating market expectations.

As a result, in pre-market trade, Morgan Stanley shares rose 2.2% to US$46.15.

READ: Bond trading surge helps Morgan Stanley report strong quarterly earnings growth

The firm - the sixth-largest US bank by assets - said its second quarter net revenues came in at US$9.5bn, while earnings per share were 87 US cents, up frrom US$8.9bn and 75 US cents per share respectively a year earlier.

The market consensus was for revenue of US$9.1bn, and earnings per share of 76 US cents.

The lender said revenues from institutional securities, wealth management, and investment management were all higher than a year ago, despite what CEO James Gorman called a "subdued trading environment."

Investment banking revenues were US$1.4bn compared to US$1.1bn a year ago, but sales and trading were US$3.2bn down from US$3.3bn in 2016.

 

]]>
Wed, 19 Jul 2017 07:31:00 -0400 https://www.proactiveinvestors.com/companies/news/181143/morgan-stanley-reports-growth-in-both-revenues-and-earnings-per-share-beating-market-expectations-181143.html
<![CDATA[News - Morgan Stanley, Citigroup, Staples and bank stress tests in focus - Pre-market ]]> https://www.proactiveinvestors.com/companies/news/180050/morgan-stanley-citigroup-staples-and-bank-stress-tests-in-focus-pre-market-180050.html Morgan Stanley (NYSE:MS.) and other US banking  titans were in focus after the bell after the results of the Fed's stress tests - a measure of their robustness,  were revealed.

All 34 of the biggest firms were granted permission by the nation's central bank to buy back stock or pay dividend - significant in that it was the first time the Fed gave the green light to pay dividends to all the banks it scrutinised.

Citigroup (NYSE:C), JP Morgan and Citigroup all ticked up over 2%  after hours.  Wells Fargo (NYSE:WFC) also gained ground in extended trading, along with Goldman Sachs.

Meanwhile, shares in stationery giant Staples (NYSE:SPLS)  added over 1.5% before being halted during after it agreed to be acquired by private-equity firm Sycamore Partners for $10.25 a share.

Elsewhere, in erarnings Pier 1 Imports (NYSE:PIR) sunk over 12% after the home retailer posted first quarter results, which disappointed.

Shares of Capital One Financial (NYSE:COF) shed 2% however, after it received "conditional" passing marks on the stress test.

]]>
Thu, 29 Jun 2017 07:27:00 -0400 https://www.proactiveinvestors.com/companies/news/180050/morgan-stanley-citigroup-staples-and-bank-stress-tests-in-focus-pre-market-180050.html
<![CDATA[News - Bond trading surge helps Morgan Stanley report strong quarterly earnings growth ]]> https://www.proactiveinvestors.com/companies/news/176602/bond-trading-surge-helps-morgan-stanley-report-strong-quarterly-earnings-growth-176602.html A near doubling in bond trading revenue helped quarterly results from US banking giant Morgan Stanley (NYSE:MS) beat market expectations, showing a big contrast with recent numbers from main rival Goldman Sachs Inc (NYSE:GS).

For the three months to March 31, Morgan Stanley saw its earnings surge by 74% to US$1.84bn, up from US$1.06bn a year earlier, while earnings per share rose to 100 US cents from 55 US cents, beating expectations for 88 US cents.

Net revenue jumped by 25% in the quarter to US$9.75bn, also beating the average estimate of US$9.27bn.

Strong underwriting fees drove revenue from investment banking to US$1.55bn, up by about 40%.

Bonds strong …

Bond trading remained strong across Wall Street during the quarter as investors shuffled their positions around Federal Reserve interest rate hikes.

Revenue in the bank's fixed-income trading business rose to US$1.7bn, up from US$873mln in the quarter, the best quarter for the business in two years.

Equities weak …

However, revenue from trading in stocks, in which Morgan Stanley has held the top spot among Wall Street banks, fell to US$2bn from US$2.1bn.

The bank’s chief executive, James Gorman, said: "We reported one of our strongest quarters in recent years. All our businesses performed well in improved market conditions.”

In pre-market trading in New York, Morgan Stanley shares were about 2.5% higher at $42.28.

The bank's results stood in sharp contrast to those Goldman Sachs, the only lender among the big Wall Street banks to have reported a drop in trading revenue.

]]>
Wed, 19 Apr 2017 08:54:00 -0400 https://www.proactiveinvestors.com/companies/news/176602/bond-trading-surge-helps-morgan-stanley-report-strong-quarterly-earnings-growth-176602.html
<![CDATA[News - Morgan Stanley makes hay from Trump victory ]]> https://www.proactiveinvestors.com/companies/news/171747/morgan-stanley-makes-hay-from-trump-victory-171747.html Buoyant trading activity following Donald Trump’s election as US president helped Wall street heavyweight Morgan Stanley (NYSE:MS) double earnings in its latest quarter.

Net income rocketed to US$1.51bn in the final quarter to December from US$753mln a year earlier.

Earnings hit 81c from a comparable 39c. Market forecasts had been for around 65c.

Bond trading was especially active in the wake of the Trump victory with Morgan Stanley’s fixed income division seeing revenues triple to US$1.5bn.

Total sales and trading net revenue rose 39% to US$3.2bn. 

Banks have been tipped to be a major beneficiary of the new president’s policies on hopes he will instigate substantial cuts in regulation.

And James Gorman, chief executive, said there was much better mood in the bank currently than a year ago.

"We are optimistic about opportunities in 2017,” he said.

]]>
Tue, 17 Jan 2017 15:31:00 -0500 https://www.proactiveinvestors.com/companies/news/171747/morgan-stanley-makes-hay-from-trump-victory-171747.html
<![CDATA[News - Morgan Stanley gets Brexit trading boost ]]> https://www.proactiveinvestors.com/companies/news/167651/morgan-stanley-gets-brexit-trading-boost-167651.html Morgan Stanley (NYSE:MS) matched its Wall Street banking peers with much stronger than expected quarterly numbers.

The bank capped a strong earning season for the US heavyweights by posting earnings 62% higher than a year ago at US$2.3bn on revenues 15% better at US$8.9bn. Earnings per share in the three months to September rose to 81c from 48c.

Rivals Goldman Sachs, Citigroup and JP Morgan had all reported better than expected numbers from their trading business and Morgan Stanley too got a leg-up from dealing.

Trading arm profits more than doubled to US$1.38bn helped by a Brexit boost for bonds and currencies.

Wealth management, where chief executive James Gorman has been trying to re-focus the group, was 9% ahead at US$901mln.

Return on equity, a key comparative measure among banks, rose to 8.7%, but lagged well behind Goldman Sach’s 11% plus.

Morgan Stanley shares rose 2% to US$32.83.

]]>
Wed, 19 Oct 2016 14:42:00 -0400 https://www.proactiveinvestors.com/companies/news/167651/morgan-stanley-gets-brexit-trading-boost-167651.html
<![CDATA[News - Bond trading shake-up and cost cuts help Morgan Stanley ]]> https://www.proactiveinvestors.com/companies/news/128422/bond-trading-shake-up-and-cost-cuts-help-morgan-stanley-128422.html A bond trading shake-up and cost cuts have helped investment banking giant Morgan Stanley (NYSE:MS) to beat quarterly profit expectations.

Although net income fell in the second quarter to US$1.43bn, or 75 cents per share, that was better than market forecasts of 59 cents per share.

The bank has refocused its bond-trading operation on deals that need little capital under new rules, such as interest rate swaps, rather than physical commodities.

Adjusted revenue from fixed income, currency and commodities trading in the second quarter rose 2.4% to US$1.3bn against a year ago,

Revenue in its equity trading business fell 5.5% to US$2.15 billion versus the same quarter a year ago.

The overall figures also benefited from a US$1bn cost-cutting drive, in which Morgan Stanley has cut travel expenses, closed data centers and moved staff to lower-cost sites.

Total non-interest costs fell 8.4% to US$6.43bn in the quarter. Its largest cost, compensation, fell 8.9% to US$4.02bn.

]]>
Wed, 20 Jul 2016 10:55:00 -0400 https://www.proactiveinvestors.com/companies/news/128422/bond-trading-shake-up-and-cost-cuts-help-morgan-stanley-128422.html
<![CDATA[News - Morgan Stanley settles MBS fines; banks count cost of Yellen remarks ]]> https://www.proactiveinvestors.com/companies/news/122457/morgan-stanley-settles-mbs-fines-banks-count-cost-of-yellen-remarks-122457.html Shares of US bank Morgan Stanley (NYSE:MS) sank by more than 6% on Thursday after it agreed to pay US$3.2bn to settle federal and state charges it misled investors in residential mortgage-backed securities during the financial crisis.

The news came on a day when US banking stocks reeled from the aftermath of comments made this week by Federal Reserve chairman Janet Yellen that suggested concerns for global growth would stall rate hikes - and in turn put pressure on banks' profitability.

The Morgan Stanley settlement came a month after another bank, Goldman Sachs (NYSE:GS), agreed to pay US$5.06bn to resolve civil claims related to the firm’s securitisation, underwriting and sale of residential MBS from 2005 to 2007.

Morgan Stanley and Goldman Sachs are the last two of the large banks to settle their part in the 2008 financial crisis - and have attracted among the smallest of the penalties. In 2014, Bank of America paid up US$16.6bn and in 2013 JP Morgan Chase paid US$13bn.

The financial crisis led to an interbank crisis of confidence that year and the subsequent government debt crisis in Europe and beyond.

Morgan Stanley shares were down 6.6% at US$21.20 - their lowest since April 2013.

Meanwhile, among other banks to feel the heat of Yellen's comments included Goldman, whose shares were down 5.26% at US$139.49, Bank of America (NYSE:BAC) down 7.3% at US$11.06, and JP Morgan Chase (NYSE:JPM) down 4.5% at US$53.02.

]]>
Thu, 11 Feb 2016 14:46:00 -0500 https://www.proactiveinvestors.com/companies/news/122457/morgan-stanley-settles-mbs-fines-banks-count-cost-of-yellen-remarks-122457.html
<![CDATA[News - Morgan Stanley falls short of market expectations ]]> https://www.proactiveinvestors.com/companies/news/116365/morgan-stanley-falls-short-of-market-expectations-116365.html Wall Street investment bank Morgan Stanley (NYSE:MS) missed market expectations by about a third as it revealed its earnings for the three months to September.

Morgan Stanley reported third quarter earnings of 42 cents per share, which was some 20 cents shy of expectations and was down from 65 cents in the comparative three months of 2014. Revenue amounted to US$7.33bn for the quarter.

The market’s expectation was for earnings per share of about 62 cents on US$8.54bn of revenue.

James Gorman, Morgan Stanley chief executive, blamed “volatility in global markets” and “a difficult environment” which had impacted on the investment bank’s fixed income unit and operations in Asian merchant banking operations.

“Our business model provides a steady foundation for the firm as we navigate these challenging markets and focus intensely on addressing areas of underperformance,” he added in a statement.

]]>
Mon, 19 Oct 2015 08:43:00 -0400 https://www.proactiveinvestors.com/companies/news/116365/morgan-stanley-falls-short-of-market-expectations-116365.html
<![CDATA[News - Morgan Stanley Q2 profit beats estimates on strong trading business ]]> https://www.proactiveinvestors.com/companies/news/115168/morgan-stanley-q2-profit-beats-estimates-on-strong-trading-business-115168.html Morgan Stanley (NYSE:MS), the owner of the world's largest brokerage bank, reported stronger-than-expected quarterly earnings as its bond and equities trading business outperformed those of its competitors. Shares advanced in morning trades.

Net income from continuing operations applicable to the company fell to $1.67 billion, or $0.85 per share, in the April-to-June quarter, from $1.82 billion, or $0.92 per share, a year earlier, the New York-based company said in a statement today.

On an adjusted basis, the bank earned $0.79 per share - exceeding the average analyst estimate by 5 cents, according to Capital IQ.

Adjusted net revenue rose 12.2 percent to $9.56 billion, with wealth management net revenue increasing 4.7 percent to $3.88 billion. 

Profit jumped at Morgan Stanley's institutional securities division, which includes its investment bank, and its stock, bond and commodities trading desks. Equity sales and trading revenues totaled $2.3 billion in the quarter, compared with $1.8 billion a year ago, as client activity rose. 

Revenue from fixed-income, currency and commodities sales and trading rose 25 percent to $1.27 billion on an adjusted basis in the June quarter. Morgan Stanley was the only big bank to report a jump in trading revenue.

"We delivered a strong quarter across each of our businesses, through client-focused execution, expense discipline and prudent risk management,'' chief executive officer James Gorman, said in the statement. "We remain focused on delivering the long-term value of this franchise."

Shares were up 0.4 percent at $30.37 at 9:43 a.m. in New York. The stock is up 3.9% this year.

Return on equity, a commonly used measure of bank profitability that Gorman has flagged as a key metric, was 9.1 percent compared with 10.7 percent in the second quarter a year ago excluding an accounting adjustment. Morgan Stanley executives have pledged to lift return on equity above 10 percent.

Morgan Stanley ranked second globally after Goldman Sachs in advising on deals in the first half of 2015, according to Thomson Reuters data. 

Morgan Stanley is the latest big bank to report quarterly earnings. On Thursday, Goldman posted sub-par quarterly profits, citing a large litigation charge. JPMorgan Chase, however, topped analysts expectations with the help of lower expenses. 

Last quarter, Morgan Stanley handily beat earnings expectations amid higher revenue from trading bonds and equities.

 

]]>
Mon, 20 Jul 2015 09:49:00 -0400 https://www.proactiveinvestors.com/companies/news/115168/morgan-stanley-q2-profit-beats-estimates-on-strong-trading-business-115168.html
<![CDATA[News - Morgan Stanley reports 60% rise in Q1 profit, hikes dividend 50% ]]> https://www.proactiveinvestors.com/companies/news/106352/morgan-stanley-reports-60-rise-in-q1-profit-hikes-dividend-50-61056.html Morgan Stanley (NYSE:MS) rose in morning trading after the owner of the world's largest brokerage reported a 60 percent rise in quarterly profit and raised its dividend by 50 percent to 15 cents per share.

Shares rose 1.4 percent to $37.23 at 9:38 a.m. in New York, paring this year’s slump to 4.2 percent

Net income rose to $2.31 billion, or $1.18 per share, in the January-to-March quarter, from $1.45 billion, or $0.74 per share, a year earlier, the New York-based company said in a statement today.

Excluding items, earnings were $1.14 per share, beating the $0.78 average estimate

On a per-share basis, Morgan Stanley’s profit was $1.18, or 85 cents when stripping out accounting adjustments. Analysts polled by Thomson Reuters had expected earnings of 78 cents a share.

Revenue rose 10.3 percent to $9.78 billion excluding accounting adjustments, its highest quarterly total in nearly eight years and its second highest ever, according to the company. Analysts had projected $9.17 billion.

“This was our strongest quarter in many years with improved performance across most areas of the firm,” chief executive officer James Gorman said in the statement.

Trading revenue was $4.08 billion in the quarter, up 26 percent from $3.24 billion in the same period a year ago. At rival Goldman Sachs Group, first-quarter trading revenue rose 23 percent.

Morgan Stanley, the last big U.S. bank to report for the quarter, is focusing less on bond markets and more on managing money for the rich as a way to free up capital and comply with stricter regulatory requirements since the financial crisis.

Revenue from investment banking totaled $1.17 billion in the first quarter, a 3.3 percent increase from $1.14 billion in the first quarter of 2014.

Revenue in Morgan Stanley’s wealth-management arm rose to $3.83 billion from $3.61 billion last year.

 

 

 

 

 

]]>
Mon, 20 Apr 2015 09:53:00 -0400 https://www.proactiveinvestors.com/companies/news/106352/morgan-stanley-reports-60-rise-in-q1-profit-hikes-dividend-50-61056.html
<![CDATA[News - Morgan Stanley Q4 profit misses on weak trading revenue; shares fall ]]> https://www.proactiveinvestors.com/companies/news/105126/morgan-stanley-q4-profit-misses-on-weak-trading-revenue-shares-fall-59369.html Morgan Stanley (NYSE:MS), owner of the world’s largest brokerage, reported a fourth-quarter profit that fell short of analyst estimates on lower revenue from its division that trades bonds, currencies and commodities. Shares dropped.

Net income rose to $1.04 billion, or $0.47 per share, in the October-to-December quarter, from $84 million, or $0.02 per share, a year earlier, the New York-based company said in a statement today.

Removing one-time items, earnings were $0.40 per share, compared with the $0.48 average estimate of 12 analysts surveyed by Capital IQ.

Total revenue fell 1 percent to $7.76 billion, missing Wall Street’s consensus of $8.08 billion.

Revenue from fixed-income, currencies and commodities trading, or FICC, dropped 14 percent to $599 million, stripping out some charges, the lowest quarterly amount since the financial crisis.

Morgan Stanley joined Goldman Sachs (NYSE:GS), Citigroup (NYSE:C), Bank of America (NYSE:BAC) and J.P. Morgan Chase (NYSE:JPM) in posting lower-than-expected revenue from FICC, a key business for big banks that has seen difficult trading conditions, walloping profits across Wall Street.

“We finished 2014 in substantially better shape than we entered the year,” Morgan Stanley’s chief executive, James P. Gorman, said in the statement. “We delivered strong results across several of our businesses, although overall performance was affected by the choppy market conditions of the fourth quarter.”

Shares retreated 2.1 percent to $34.15 at 8:38 a.m. in New York. The stock had lost 10 percent since the beginning of the year through yesterday.

Revenue from equities trading, an important profit driver for Morgan Stanley, rose to $1.63 billion from $1.5 billion a year earlier, but came in lower than what rival Goldman reported on January 16.

The firm’s more stable wealth management business turned in stronger results. Revenue in that division rose 2.4 percent from a year earlier to $3.8 billion.

But the wealth management unit’s pre-tax profit margin, a closely watched efficiency metric, was 19 percent in the fourth quarter, flat with a year earlier.

The firm reported higher compensation costs in the division, which helped drive the margin lower. Morgan Stanley officials had previously said they are targeting a pre-tax profit margin of 22 percent to 25 percent by the end of 2015.

Earlier this month, the firm fired a broker accused of stealing data, including account numbers, for as many as 350,000 wealth-management clients. In the third quarter, the bank took a $50 million charge to cover losses for clients to whom it failed to send mutual-fund prospectuses.

For the past two years, Morgan Stanley has been in the process of selling businesses that own and operate physical commodity assets, like oil terminals and pipelines, under pressure from regulators and lawmakers.

The bank's legal expenses were $284 million, down from $1.4 billion a year earlier.

]]>
Tue, 20 Jan 2015 08:55:00 -0500 https://www.proactiveinvestors.com/companies/news/105126/morgan-stanley-q4-profit-misses-on-weak-trading-revenue-shares-fall-59369.html
<![CDATA[News - Investors impressed with Morgan Stanley's Q3 results as profit soars ]]> https://www.proactiveinvestors.com/companies/news/103716/investors-impressed-with-morgan-stanleys-q3-results-as-profit-soars-57500.html Morgan Stanley (NYSE:MS) brought upbeat news to Wall Street Friday as the investment bank reported third quarter profit surged on strong performance across investment banking, wealth management and trading.

For the period ending September 30, the company posted net income from continuing operations of $1.71 billion, or 84 cents per share, compared with a net profit of $889 million, or 44 cents per share, in the same quarter last year.

The company said the results in the latest period were supported by a tax benefit of $237 million, or 12 cents per share. Stripping out accounting adjustments and the tax benefit, earnings were 65 cents per share, topping the 54 cents expected by analysts.

Revenues came to $8.91 billion compared with $8.0 billion a year ago. Excluding debt valuation adjustment, net revenues were $8.69 billion. The debt valuation adjustment is tied to the change in the fair value of certain of the firm's long-term and short-term borrowings resulting from the fluctuation in its credit spreads and other factors.

“Morgan Stanley has delivered another quarter of earnings growth and strong performance based on consistent execution for our clients," said chief executive officer, James P. Gorman.

"We are well positioned to create superior returns for our shareholders, particularly as the U.S. economy continues to strengthen.” 

Morgan Stanley said institutional securities net revenue, excluding DVA, was $4.3 billion, up from $3.88 billion a year ago, reflecting continued strength in investment banking and equity sales and trading, as well as improved results in fixed income and commodities sales and trading. Equities trading revenue climbed over 4 percent in the quarter to $1.78 billion, topping the $1.6 billion reported by rival Goldman Sachs (NYSE:GS) on Thursday.

Advisory revenues of $392 million also increased from $275 million a year ago on higher levels of completed M&A activity. Equity underwriting revenue was $464 million from $236 million a year earlier, while debt underwriting was steady at $484 million.

The wealth management unit reported net revenues of $3.78 billion versus $3.48 billion in the third quarter of 2013 as asset management fee revenues increased while transactional sales declined. Pre-tax income from the unit rose to $836 million from $668 million, while pre-tax margin, a closely-tracked measure, reached 22.4 percent.

The company said fee based asset flows for the quarter were $6.5 billion, with total client assets above $2.0 trillion at quarter end. 

Investment management revenues, meanwhile, totaled $655 million, down from $828 million in the prior year period, reflecting lower investment gains and carried interest in the merchant banking and real estate investing businesses. This was partly offset by higher results in traditional asset management. Pre-tax income from the unit fell to $188 million from $300 million in the same quarter last year.

Assets under management or supervision at September 30 were $398 billion, increased from $360 billion a year ago primarily due to market appreciation and positive flows, Morgan Stanley said.

The company reported slightly higher compensation expense of $4.2 billion for the quarter on account of higher revenues, but said non-compensation expenses dropped to $2.4 billion from $2.6 billion due to lower litigation fees.

Shares were last up 2.1 percent at US$33.23 in afternoon trading in New York, rising to as high as US$34.00 earlier in the session. The stock has a 52-week high of US$36.44. 

]]>
Fri, 17 Oct 2014 13:26:00 -0400 https://www.proactiveinvestors.com/companies/news/103716/investors-impressed-with-morgan-stanleys-q3-results-as-profit-soars-57500.html
<![CDATA[News - Morgan Stanley Q2 profit more than doubles on strong investment banking ]]> https://www.proactiveinvestors.com/companies/news/102343/morgan-stanley-q2-profit-more-than-doubles-on-strong-investment-banking-55513.html Morgan Stanley (NYSE:MS) advanced in pre-market trade after the owner of the world’s largest brokerage reported profit more than doubled in the second quarter as stronger performances by its investment banking and wealth management businesses offset a fall in revenue from bond trading.

Shares were up 1.4 percent at $32.95 at 8:29 a.m. in New York. The stock had risen 3.6 percent this year through yesterday.

Net income almost doubled to $1.94 billion, or 94 cents per share, in the April-to-June period, from $980 million, or 41 cents per share, a year earlier, the New York-based company said  in a statement today. 

Stripping out an accounting adjustment tied to the firm’s own debt and a tax benefit, profit was 60 cents per share, surpassing Wall Street's consensus of 56 cents per share.

Results included a tax benefit of $609 million or 31 cents per diluted share, related to the measurement of reserves and related interest, the firm said.

Revenue excluding accounting adjustments increased to $8.52 billion from $8.34 billion a year earlier. That result was slightly higher than the $8.22 billion analysts had expected

“Our quarterly results demonstrated solid performance, despite a muted operating environment," Chief Executive Officer James P. Gorman said in the statement. "We are seeing momentum across our businesses, with particular strength in Investment Banking, Equity Sales & Trading and Wealth Management."

Morgan Stanley's investment banking division generated $1.43 billion in second-quarter revenue. That figure included $418 million from financial advisory, $489 million from equity underwriting and $525 million from debt underwriting.

Return on equity, a measure of how well management reinvests earnings, was 7.8 percent in the first half, excluding accounting adjustments and the tax benefit. That was still below 10 percent, the firm’s estimate of its cost of equity.

Revenue from the bank's fast-growing wealth management business rose 5 percent to $3.72 billion.

Revenue from fixed-income, currency and commodities (FICC) trading fell 17 percent to $1 billion as a lack of volatility discouraged trading during the quarter.

Goldman Sachs Group Inc. (NYSE:GS), JPMorgan Chase & Co (NYSE:JPM) and Citigroup Inc. (NYSE:C) earlier reported that their revenue from FICC trading fell 10-15 percent in the quarter.

Bank of America Corp (NYSE:BAC), alone among the big U.S. banks, reported an increase in revenue from the business, helped by a slight pickup in activity late in the quarter.

Morgan Stanley, the world's second-largest in mergers-and-acquisitions, benefited from a strong equities market in the quarter. Advisory revenue rose 26 percent to $418 million.

Morgan Stanley also showed some progress in reining in expenses. Overall, noninterest expense was $6.62 billion, down 1.4 percent from the year earlier but flat from the first quarter.

 

 

]]>
Thu, 17 Jul 2014 09:00:00 -0400 https://www.proactiveinvestors.com/companies/news/102343/morgan-stanley-q2-profit-more-than-doubles-on-strong-investment-banking-55513.html
<![CDATA[News - Morgan Stanley Q4 net drops 70%; results beat, shares gain ]]> https://www.proactiveinvestors.com/companies/news/99448/morgan-stanley-q4-net-drops-70-results-beat-shares-gain-51347.html Morgan Stanley (NYSE:MS), owner of the world’s largest brokerage, reported a 70 percent drop in fourth-quarter profit as it was hit by $1.2 billion in litigation bills. However, adjusted earnings topped analysts' expectations; shares rose in premarket trading.

Net income dropped to $181 million, or 7 cents a share, in the three months ended Dec. 31, from $594 million, or 29 cents a share, in the year-earlier period, the New York-based company said in a statement today. Removing items that included the legal expenses, per-share profit was 50 cents.

Revenue increased 9 percent to $8.2 billion from $7.5 billion.

Analysts had predicted per-share earnings of 44 cents on revenue of $8.02 billion.

Morgan Stanley shares advanced 1.4 percent to $32.40 at 8:31 a.m. in New York. The stock had rallied approximately 59 percent over the past twelve months through yesterday.

“We are continuing to address many of the legal issues from the financial crisis,” Chief Executive Officer James Gorman said in the statement. “We look forward to further progress on our strategic goals as we move into 2014 with strength and momentum.” 

Gorman, who took over at the end of 2009, is working on transforming the investment bank into a less risky, more diversified firm.  

Revenue from Morgan Stanley's wealth management business grew 12.2 percent to $3.73 billion in the fourth quarter.

Asset management, the firm’s other main division, posted fee revenue of $2 billion, a 7 percent increase from the same period last year.

Overall, the firm’s return on equity from continuing operations for the quarter, excluding the debt charges, was 2.4 percent.

Revenue from fixed-income trading skidded 14.4 percent to $694 million.

Morgan Stanley also reported its compensation and benefits expense increased 10 percent to $3.99 billion. Overall Morgan Stanley's noninterest expense rose 29 percent to $7.9 billion.

Morgan Stanley's institutional-securities business, which includes investment banking and sales and trading results, generated adjusted revenue of $3.7 billion, up from $3.6 billion a year earlier.

Advisory revenue inched down to $451 million in the fourth quarter, from $454 million a year earlier.

Yesterday, Goldman Sachs Group Inc. (NYSE:GS), the fifth-biggest U.S. bank by assets, reported a 19 percent drop in fourth-quarter net income on lower revenue from fixed income, currencies and commodities trading fell. But results beat analysts' estimates.

Also yesterday, Citigroup Inc. (NYSE:C), the third-largest U.S. bank, reported fourth-quarter profit that trailed analysts' expectations on weak bond trading.

On Jan. 15, Bank of America Corp. (NYSE:BAC), the second-biggest U.S. bank, reported profit quadrupled in the fourth quarter, helped by a sharp decline in provisions to cover bad loans. 

On Jan. 14, JPMorgan Chase & Co. (NYSE:JPM), the biggest U.S. bank, said fourth-quarter profit declined 7 percent to $5.28 billion on costs from legal settlements. Wells Fargo & Co. (NYSE:WFC), the biggest home lender, said net income rose 10 percent to $5.61 billion, setting a record for the quarter and the year. 

]]>
Fri, 17 Jan 2014 08:56:00 -0500 https://www.proactiveinvestors.com/companies/news/99448/morgan-stanley-q4-net-drops-70-results-beat-shares-gain-51347.html
<![CDATA[News - Morgan Stanley swings to Q3 profit, beats estimates ]]> https://www.proactiveinvestors.com/companies/news/97973/morgan-stanley-swings-to-q3-profit-beats-estimates-49061.html Shares of Morgan Stanley (NYSE:MS) spiked to a 52-week high after the investment bank said it swung to a profit in the third quarter.

The New York-based company reported a profit of US$888 million, or 44 cents a share in the three-month period, compared with a loss of US$1 billion, or 55 cents a share, for the same period a year ago. On an adjusted basis, Morgan Stanley's profit was 50 cents a share, a dime higher than the mean analyst estimate.

Morgan Stanley's revenue jumped nearly 50% to US$7.9 billion from US$5.3 billion in last year's third quarter. Excluding a debt valuation adjustment of US$171 million, revenue was US$8.1 billion, compared with US$7.5 billion in the same prior-year period.

“Our results point to the increased consistency, strength and balance we are deriving from our business model," said chairman and chief executive officer James Gorman. "Overall, our stronger year-over-year revenues and net income reflect the progress we have made to position the Firm well for the future."

The bank said wealth management net revenues came to US$3.5 billion and pre-tax margin was 19%. Fee-based asset flows for the quarter were US$15.0 billion and total client assets were US$1.8 trillion at quarter end.

The investment management unit recorded US$828 million in revenue, with US$360 billion in assets under management. Revenue from institutional securities excluding DVA was US$3.9 billion.

Shares are trading 1.2% higher to $29.28 on Friday morning. Morgan Stanley's market value has grown about two-thirds so far this year.

]]>
Fri, 18 Oct 2013 11:10:00 -0400 https://www.proactiveinvestors.com/companies/news/97973/morgan-stanley-swings-to-q3-profit-beats-estimates-49061.html
<![CDATA[News - Morgan Stanley reports stronger-than-expected 66% Q2 profit leap ]]> https://www.proactiveinvestors.com/companies/news/96329/morgan-stanley-reports-stronger-than-expected-66-q2-profit-leap-46217.html Morgan Stanley (NYSE:MS), the sixth-largest U.S. bank, said its second-quarter profit rose 66 percent, topping analysts' predictions, as revenue from equities trading, wealth-management and investment banking increased. Shares jumped in premarket.

Net income for the three months that ended June 30 rose to $980 million, or 41 cents a share, from $591 million, or 29 cents a share, a year earlier, the New York-based firm said in a statement on Thursday. Taking out the value of the firm's debt, or DVA, in addition to one-time items, the company earned 45 cents a share, above the 43 cents predicted by 22 analysts on average.

Quarterly revenue, stripping out accounting adjustments, advanced to $8.33 billion from $6.6 billion a year earlier. That beat analysts' estimate of $7.89 billion. 

Morgan Stanley shares climbed 4.6 percent to $27.75 at 8:21 a.m. in New York on Thursday, headed for the highest price in more than a year. The shares have rises approximately 39 percent so far this year, compared with a 26 percent gain for JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. bank by assets.

“This quarter, we saw significant year-over-year revenue growth in each of our five major business units and higher year-over-year profitability," Chief Executive Officer James Gorman said in the statement.

"Equity sales and trading results were strong across all products and regions, while investment banking delivered top-three rankings in announced and completed M&A, global equity offerings and global IPOs," he added.

Wealth management revenue grew 10 percent to $3.53 billion, accounting for a profit margin of 18.5 percent. Revenue from investment banking jumped 22 percent to $1.08 billion. Equities sales and trading rose 58 percent to $1.81 billion, excluding DVA. Fixed-income revenue rose 50 percent from $770 million.

Revenue from debt underwriting increased about 24 percent to $418 million, while revenue from equity underwriting rose about 16 percent to $327 million.

Asset management reported a pretax profit of $160 million, up from $43 million in the year-earlier period.

Morgan Stanley is the last of the six biggest U.S. banks to report better-than-expected second-quarter net income. On Wednesday, Bank of America Corp. (NYSE:BAC), the second-biggest U.S. lender, posted a 63 percent increase as revenue from equities sales and trading increased and expenses decreased.

On Tuesday, Goldman Sachs Group Inc. (NYSE:GS), the fifth-largest U.S. bank by assets, said profit doubled to $1.93 billion, or $3.70 a share, as revenue from investing and trading leaped. 

On Monday, Citigroup Inc. (NYSE:C), the third-largest U.S. bank by assets, reported a 42 percent gain to $4.18 billion, or $1.34 a share, as stock-trading revenue increased and losses on mortgages dropped. 

Last Friday, JPMorgan posted 31 percent increase to $6.5 billion, or $1.60 a share, as its trading revenue rallied and it shaved more provisions for bad loans. Also on Friday, Wells Fargo & Co. (NYSE:WFC), the fourth-biggest U.S. bank by assets, reported a 20 percent rise to $5.52 billion, or 98 cents a share, as it set aside less money to cover bad loans. 

]]>
Thu, 18 Jul 2013 09:18:00 -0400 https://www.proactiveinvestors.com/companies/news/96329/morgan-stanley-reports-stronger-than-expected-66-q2-profit-leap-46217.html
<![CDATA[News - Morgan Stanley takes 100 per cent control of Smith Barney Holdings ]]> https://www.proactiveinvestors.com/companies/news/95765/morgan-stanley-takes-100-per-cent-control-of-smith-barney-holdings-45255.html Morgan Stanley (NYSE: MS) is buying the remaining 35 per cent stake in Morgan Stanley  Smith Barney Holdings it does not already own and, in the process, relieving Citigroup (NYSE: C) of its interest.

Morgan Stanley received regulatory approval to take control of Citigroup's Smith Barney position, for which it will pay $4.7 billion in cash. 

The transaction will result in a $200 million charge and will have an impact on Morgan Stanley's earnings for the quarter ending in June.

"Immediately upon closing, we expect to start seeing the benefits of 100 percent ownership – including an expanded deposit base, unique syndication and distribution capabilities and enhanced opportunities for both our wealth management and institutional clients," said Morgan Stanley's chairman and chief executive officer James Gorman in a statement.

Morgan Stanley's shares fell 31 cents to $24.85 per share, while Citigroup dropped 83 cents to $47.07. 

]]>
Fri, 21 Jun 2013 10:00:00 -0400 https://www.proactiveinvestors.com/companies/news/95765/morgan-stanley-takes-100-per-cent-control-of-smith-barney-holdings-45255.html
<![CDATA[News - Morgan Stanley posts better-than-expected Q1 profit ]]> https://www.proactiveinvestors.com/companies/news/94375/morgan-stanley-posts-better-than-expected-q1-profit-42889.html  

Morgan Stanley (NYSE:MS), the sixth-largest U.S. bank by assets, reported a profit in the first quarter, versus a loss a year earlier, that exceeded analysts' expectations.

Net income for the quarter ended March 31 was $984 million, or 49 cents a share, compared with a net loss of $94 million, or 6 cents, in the year-earlier period, the New York-based firm said in a statement on Thursday. Excluding some items, the company's net income was 61 cents a share, exceeding the average estimate of 20 analysts which was for a profit of 57 cents a share.

Revenue excluding debt valuation adjustments (DVA) fell 4.8 percent to $8.48 billion from a year earlier, but ahead of the 8.35 billion predicted by 17 analysts.

“Morgan Stanley demonstrated solid momentum across the firm this quarter, consistent with the strategic objectives we laid out at the beginning of the year," the company quoted CEO James P. Gorman as saying.

In the wealth management group, revenue rose 5.4 percent to $3.47 billion, making up about 41 percent of total revenue. "In Global Wealth Management, our operating pre-tax profit was the highest in our history, and we look forward to completing the acquisition of the remaining 35 percent of our wealth management joint venture once we have obtained full regulatory approval," Gorman said.

Fixed-income revenue fell 42 percent to $1.5 billion, excluding DVA, compared with the year-earlier quarter, driven by declines in commodities and rates.

Revenues in equities trading fell 19 percent from a year earlier to $1.59 billion, also excluding DVA. 

Investment banking first-quarter revenue rose 11 percent to $945 million, from a year earlier. 

Looking forward, "while the global environment continues to have moments of fragility, we believe the broad economic outlook for the next several years is stronger than in the recent past,” Gorman said.

The shares fell 0.3 percent to $21.47 in premarket trading in New York after the earnings were announced. The stock gained approximately 12 percent since the beginning of the year through Wednesday, compared with a gain of 8.8 percent by the Standard & Poor's 500 index (INDEXSP:.INX).

 

]]>
Thu, 18 Apr 2013 09:12:00 -0400 https://www.proactiveinvestors.com/companies/news/94375/morgan-stanley-posts-better-than-expected-q1-profit-42889.html
<![CDATA[News - Morgan Stanley beats Street views ]]> https://www.proactiveinvestors.com/companies/news/92484/morgan-stanley-beats-street-views-39571.html  

Shares of Wall Street bank Morgan Stanley (NYSE:MS) shot up over six per cent in premarket trading Friday, after it reported fourth quarter profits that beat estimates on high margins in its wealth management business and “solid” equity sales.

Shares of the company were lately up 6.51 per cent, trading at $22.10.

In the quarter that ended December 31, Morgan Stanley reported income of $481 million or 25 cents per diluted share, compared with a loss of $275 million or 15 cents per share for the same period a year ago. 

The company noted that its prior-year fourth quarter included a pre-tax loss of $1.7 billion or 58 cents per diluted share, related to a settlement with MBIA Insurance Corporation.

Revenues stood at $7.0 billion, up 23 per cent compared with $5.7 billion a year ago.

Stripping out the impact of debt valuation adjustment (DVA) changes, revenues were $7.5 billion and income was $894 million or 45 cents per diluted share.

Earnings from continuing operations in the latest period were 28 cents per share. 

Analysts polled by Thomson Reuters expected per share earnings of 27 cents on revenue of $7.02 billion.

“After a year of significant challenges, Morgan Stanley has reached a pivot point,” said chairman and CEO James P. Gorman.  

“We demonstrated meaningful progress in our wealth management joint venture, reaching the highest pre-tax margin since the inception of the JV.” 

Gorman added that the company is ahead of its risk weighted asset reduction targets for its fixed income and commodities unit, and saw strength in its investment banking and equity sales and trading business. 

The bank's global wealth management group reported net revenues of $3.5 billion and pre-tax margin was 17 per cent, up sharply from seven per cent a year ago, and the highest since it entered a brokerage joint venture with Citigroup (NYSE:C) more than three years ago.

Morgan Stanley added that the average annualized revenue per global representative was $824,000, also the highest since the inception of the joint venture.

The firm's institutional securities unit posted revenues excluding DVA of $3.5 billion, reflecting “strong performance” in investment banking, “solid results” in equity sales and trading and a decline in fixed income and commodities sales and trading.

Morgan Stanley’s asset management segment reported net revenues of $599 million with assets under management or supervision of $338 billion.

At the end of the fourth quarter, the firm’s Tier 1 capital ratio under Basel I was 17.9 per cent and Tier 1 common ratio was 14.7 per cent.

The company also declared a five-cent quarterly dividend per common share, payable on February 15 to shareholders of record on February 5.

 

]]>
Fri, 18 Jan 2013 08:39:00 -0500 https://www.proactiveinvestors.com/companies/news/92484/morgan-stanley-beats-street-views-39571.html
<![CDATA[News - Morgan Stanley posts Q3 loss, beats Street expectations ]]> https://www.proactiveinvestors.com/companies/news/90510/morgan-stanley-posts-q3-loss-beats-street-expectations-36168.html

Wall Street bank Morgan Stanley (NYSE:MS) Thursday reported third-quarter earnings and revenue that beat analyst expectations despite recording a loss.

In the quarter ended September 30, Morgan Stanley reported a loss of $1.02 billion, compared with a prior-year profit of $2.2 billion. The per-share loss was 55 cents compared with a profit of $1.15 a year earlier.

Stripping out the impact of debt-valuation changes, the per-share profit was 28 cents versus two cents per share a year earlier.

Revenue fell 46 per cent to $5.29 billion, including a negative impact of $2.3 billion from the tightening of credit spreads related to debt. Stripping out those charges, revenue was up 18 per cent to $7.55 billion.

Analysts polled by Thomson Reuters expected earnings of 24 cents on revenue of $6.36 billion.

"Our third quarter results show a balanced, strategically focused franchise that has attained stronger revenues and executed on key goals," Morgan Stanley's chairman and CEO James P. Gorman said.

"The rebound in Fixed Income & Commodities sales and trading indicates that clients have re-engaged after the uncertainty of the rating review in the previous quarter. 

"We are beginning to unlock the full potential of the Global Wealth Management franchise, having increased our ownership of, and agreed on a purchase price for the rest of, Morgan Stanley Wealth Management. 

"I am confident in our potential to enhance profitability and increase value for our shareholders in the quarters ahead."

Revenue gains were broad-based, with the biggest moves in asset management, which helps institutional clients invest in private equity, real estate and other areas.

The bank's global wealth management group reported net revenues of $3.3 billion and global fee-based asset flows of $7.5 billion. Its asset management arm had $331 billion in assets under management or supervision.

Net revenues for institutional securities were $3.6 billion compared with $3.0 billion a year ago with higher revenues in fixed income & commodities sales and trading and investment banking.

Morgan Stanley ranked number 1 in global IPOs, number 2 in global mergers and acquisitions and number 3 in global equity.

Compensation rose in the quarter, from $3.6 billion a year ago to $3.9 billion.

Last month, the firm said it would offer a one-time cash bonus to several thousand support personnel at its Morgan Stanley Smith Barney brokerage to compensate them for extra work on a difficult technology conversion.

]]>
Thu, 18 Oct 2012 08:35:00 -0400 https://www.proactiveinvestors.com/companies/news/90510/morgan-stanley-posts-q3-loss-beats-street-expectations-36168.html
<![CDATA[News - Morgan Stanley in talks to sell commodities unit ]]> https://www.proactiveinvestors.com/companies/news/90165/morgan-stanley-in-talks-to-sell-commodities-unit-35607.html

Morgan Stanley (NYSE:MS) may be in focus after media reports said the bank is in talks to sell a majority stake of its commodities-trading unit to Qatar’s sovereign-wealth funds as a way of sidestepping upcoming regulations.

While talks were initially for selling a minority stake to the Qatar Investment Authority, negotiations have moved on to discussing a majority stake, the Financial Times reported. 

Industry analysts estimate the whole commodities unit may be worth more than $2 billion. 

A move to sell a majority stake would shield Morgan Stanley from Dodd-Frank provisions preventing banks from placing bets with their own money on commodities, and allow it to keep parts of future revenue.

Part of the Dodd-Frank act prohibits banks from proprietary trading, which limits the ability of banks to make their own bets on prices of assets that include commodities. Banks also face stiffer requirements to hold more capital to balance the risk on their books.

Qatar, one of the richest countries in the world, needs an outlet for its large state oil and gas revenues and its sovereign wealth fund has invested widely over the past year, mainly in Europe. Commodities, energy and luxury goods companies remain a particular focus of the emirate’s investments. 

In April, a Qatar Investment Authority official said the fund was upbeat on the commodities sector, predicting a supply-demand gap would emerge in 2016 or 2017, pushing prices higher.

]]>
Fri, 05 Oct 2012 08:22:00 -0400 https://www.proactiveinvestors.com/companies/news/90165/morgan-stanley-in-talks-to-sell-commodities-unit-35607.html
<![CDATA[News - Morgan Stanley funds "like" Facebook ]]> https://www.proactiveinvestors.com/companies/news/89014/morgan-stanley-funds-like-facebook-33812.html

Funds run by Morgan Stanley (NYSE:MS) have disproportionately high investments in the social-media company, leaving fund shareholders exposed to the stock's big drop since its May 18 IPO, new data shows.

The Wall Street bank was the lead underwriter in Facebook's (NASDAQ:FB) $16 billion initial public offering earlier this year.

The outsized Facebook investment could leave clients exposed to the steep fall in Facebook shares since its May initial public offering.

The data from Morningstar shows that eight of the top nine U.S. mutual funds with Facebook shares as a percentage of total assets are run by Morgan Stanley's asset-management arm.

Morgan Stanley had a crucial role in lining up orders for Facebook as the social-media company prepared to go public. It helped advise Facebook executives to increase the size and price of the IPO, despite warnings the company was making about its profit outlook. 

The bank brought in $200 million in underwriting fees and trading profits, according to regulatory filings and people involved in the deal.

The funds that hold Facebook shares acquired many of them before the IPO at prices well below the $38 offering price, meaning that fundholders may still have paper gains on Facebook purchases, depending on when the fund bought the original stake. 

It also means the funds have been unable to sell any of their pre-IPO holdings.

The funds span the $1.6 billion Focus Growth fund to the $2.5 million Institutional Global Advantage fund.

Morgan Stanley's funds don't appear to have violated Securities and Exchange Commission (SEC) rules limiting investments in offerings underwritten by an affiliate. 

Morgan Stanley isn't the largest institutional holder of Facebook.

Larger holders by dollar value include Fidelity Investments, T. Rowe Price Group (NASDAQ:TROW) and Goldman Sachs Asset Management, a unit of Goldman Sachs Group (NYSE:GS). Goldman also owned Facebook shares before its IPO.

]]>
Fri, 24 Aug 2012 12:45:00 -0400 https://www.proactiveinvestors.com/companies/news/89014/morgan-stanley-funds-like-facebook-33812.html
<![CDATA[News - Morgan Stanley swings to Q2 profit, revenue falls 24% ]]> https://www.proactiveinvestors.com/companies/news/88026/morgan-stanley-swings-to-q2-profit-revenue-falls-24-32184.html US investment bank Morgan Stanley (NYSE:MS) said Thursday that it swung to a second quarter profit primarily due to changes in its credit spreads and gains related to the value of its debt, but reported a sharp drop in revenue, missing analyst expectations.

The company posted earnings of $563 million, or 28 cents per share, from continuing operations. Net income applicable to Morgan Stanley, including discontinued operations, was 29 cents per diluted share, compared with a net loss of 38 cents per diluted share in the second quarter of 2011.

Results for the quarter included positive revenue of $350 million related to changes in Morgan Stanley’s debt-related credit spreads and other items such as debt valuation adjustment (DVA).

Morgan Stanley’s profit was 16 cents a share, excluding accounting gains related to the value of its debt.

Consolidated revenue fell to $6.95 billion from $9.21 billion a year earlier. Excluding the DVA, net revenues for the current quarter were $6.6 billion compared with $9.0 billion a year ago.

On average, analysts polled by Thomson Reuters were projecting earnings of 43 cents, on sales of $7.7 billion.

Before the opening bell, the news sent Morgan Stanley’s share down 4.72 per cent to $13.33 apiece in trade in New York on Thursday.

“Although global economic uncertainty remains a headwind, we are proactively positioning the firm for success,” chief executive James P. Gorman said in a statement.

“Our businesses showed resilience in key areas during the quarter, and we made progress against strategic goals. We continue to be focused on taking the necessary steps to deliver strong returns for our shareholders.”

The institutional securities group reported revenue of $3.2 billion, down from the $5.2 billion it reported last year.

Second quarter fixed income and commodity sales and trading revenues were down to $770 million, compared with $1.9 billion a year ago. The firm said the decrease reflected reduced levels of client activity across geographies and most products.

Its global wealth management unit recorded revenue of $3.3 billion, down slightly from $3.4 billion in the same quarter last year, on reduced commissions and fees from lower levels of client activity. The segment had a pre-tax margin of 12 per cent.

Asset management posted a pre-tax profit of $43 million, down sharply from $168 million in the prior year period. The unit reported sales were down to $456 million from $636 million, due to reduced gains on principle investments in the real estate investing business.

As a result of a rating agency downgrade of the Morgan Stanley’s long-term credit rating in June, the amount of additional collateral requirements or other payments that could be called by counterparties, exchanges or clearing organizations, was approximately $6.3 billion, of which $2.9 billion was called and posted as of June 30, 2012.

The firm declared a quarterly dividend of five cents per share, which will be paid out to shareholders August 15.

Morgan Stanley, headquartered in New York, is a global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services from over 1,200 offices in 43 countries.

]]>
Thu, 19 Jul 2012 09:14:00 -0400 https://www.proactiveinvestors.com/companies/news/88026/morgan-stanley-swings-to-q2-profit-revenue-falls-24-32184.html
<![CDATA[News - Morgan Stanley swings to Q1 loss, but tops views on strong trading ]]> https://www.proactiveinvestors.com/companies/news/85495/morgan-stanley-swings-to-q1-loss-but-tops-views-on-strong-trading-27959.html US investment bank Morgan Stanley (NYSE:MS) said Thursday that it swung to a first quarter loss on a hefty accounting charge, but excluding this, the bank topped analyst estimates on strong sales and trading revenue.

The company swung to a loss of $119 million, or six cents a share for the quarter that ended March 31. That compared to a profit of $736 million, or 50 cents a share, last year.

Excluding an accounting rule known as debt valuation adjustments, which requires companies to reflect changes to their own debt values, it would have earned 71 cents per share compared to 59 cents a share a year ago.

Consolidated revenue fell to $6.9 billion from $7.5 billion a year earlier. Excluding the accounting charges, sales were $8.9 billion, from $7.8 billion in the same quarter a year ago.

On average, analysts polled by Bloomberg were projecting earnings of 44 cents, on sales of $7.4 billion.

Before the opening bell, the news sent Morgan Stanley’s share up by 5.83 percent to $18.69 apiece in trade in New York on Thursday.

"This quarter is further evidence that Morgan Stanley has rebounded from the financial crisis of 2008 and is in a significantly stronger position," chief executive James P. Gorman said in a statement.

"Of particular note was the strength in sales and trading, which showed broad-based gains across products and regions."

The institutional securities group reported revenue of $3.02 billion, down slightly from the $3.57 billion it reported last year. Excluding the accounting loss, the division posted revenue of $5 billion, up from $3.76 billion a year earlier.

First quarter fixed income and commodity sales and trading revenues were up 34 percent to $2.6 billion. The firm said the growth reflected strength in interest rates, commodities and corporate credit.

Its global wealth management unit recorded flat revenue of $3.4 billion, as higher asset management and net interest revenue were offset by lower commissions. The segment had a pre-tax margin of 11 percent.

The unit also reported a pre-tax profit of $387 million versus a year-ago profit of $344 million, the company said.

Asset management posted a pre-tax profit of $128 million, up from $125 million in the prior year period. The unit reported sales were down to $533 million from $622 million, due to reduced gains on principle investments in the merchant banking business.

The firm declared a quarterly dividend of five cents per share, which will be paid out to shareholders May 15.

Morgan Stanley, headquartered in New York, is a global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.

The firm's employees serve clients worldwide including corporations, governments, institutions and individuals from over 1,300 offices in 43 countries.

]]>
Thu, 19 Apr 2012 09:42:00 -0400 https://www.proactiveinvestors.com/companies/news/85495/morgan-stanley-swings-to-q1-loss-but-tops-views-on-strong-trading-27959.html
<![CDATA[News - Morgan Stanley swings to Q4 loss, but still beats Street view ]]> https://www.proactiveinvestors.com/companies/news/82940/morgan-stanley-swings-to-q4-loss-but-still-beats-street-view-23717.html Morgan Stanley (NYSE:MS) posted a loss for its fourth quarter of Thursday, mainly on charges related to legal settlements, though the firm still beat analysts' estimates.

For the three months that ended December 31, the investment bank posted a net loss of $227 million, or $0.14 loss per share, compared to profits of $871 million, or $0.44 per share, a year ago.

The company's results included a $1.7 billion pre-tax loss related to its previously announced settlement with bond insurer, MBIA, regarding guarantees tied to commercial and residential real estate.

Revenues for the quarter also fell to $5.71 billion, down 26 percent from $7.74 billion a year earlier.

According to Thomson Reuters, analysts were expecting a 57-cent per share loss for the quarter, on $5.57 billion in sales.

"For the past year, Morgan Stanley has made enormous progress by addressing a number of outstanding strategic and legacy issues," said CEO James P. Gorman.

"These included the conversion of MUFG's preferred investment into common stock and the settlement with MBIA.

"Importantly, we also achieved market share gains across our institutional businesses, as well as significant net flows into our Global Wealth Management and Asset Management platforms.

"We ended the year in better shape than where we started and we are well positioned to deliver improved returns to shareholders in 2012 and beyond."

Total revenues from the company's institutional services business fell 42 percent to $2.07 billion in the quarter, as lower levels of market activity sent advisory revenues down 16 percent, and underwriting and equity underwriting revenues fell 54 percent and 71 percent, respectively, also on weak market movement.

Fixed income underwriting revenues declined 22 percent, reflecting lower high-yield bond issuance volumes, the bank said.

Overall revenues under the global wealth management group fell three percent to $3.25 billion, as lower commissions and investment banking revenues were only partially offset by higher net interest revenues.

Total sales under Morgan Stanley's asset management banner fell 50 percent to $424 million, reflecting lower gains on principal investments in the merchant banking and real estate investing business, it said.

In New York, shares were up 7.38 percent in pre-market trading, to $18.64 as of 8:13 am EDT.

]]>
Thu, 19 Jan 2012 09:30:00 -0500 https://www.proactiveinvestors.com/companies/news/82940/morgan-stanley-swings-to-q4-loss-but-still-beats-street-view-23717.html
<![CDATA[News - Morgan Stanley to shed 580 jobs from NYC offices ]]> https://www.proactiveinvestors.com/companies/news/82453/morgan-stanley-to-shed-580-jobs-from-nyc-offices-22885.html Morgan Stanley (NYSE:MS) said in a filing Wednesday that 580 of the 1,600 job cuts announced earlier this month will be from four of its offices in New York City.

Rolling layoffs began December 15 at the New York-based firm, with four New York City affected locations.

The banking industry has been struggling with Europe's debt crisis, as well as concerns over the US' slowing economic growth.

Job cuts at Morgan Stanley will happen globally, with 1,600 amounting to around 2.6 percent of the investment bank's total employees at September-end.

Morgan Stanley's shares have shed nearly 44 percent this year. The four New York City locations include 1221 Avenue of the Americas, 1 New York Plaza, 1585 Broadway and 750 Seventh Ave.

]]>
Wed, 28 Dec 2011 09:15:00 -0500 https://www.proactiveinvestors.com/companies/news/82453/morgan-stanley-to-shed-580-jobs-from-nyc-offices-22885.html
<![CDATA[News - Morgan Stanley swings to Q3 profit ]]> https://www.proactiveinvestors.com/companies/news/80683/morgan-stanley-swings-to-q3-profit-19855.html Morgan Stanley (NYSE:MS) announced Wednesday it pulled from a loss in the third quarter on a $3.4 billion accounting gain, related to a lower value of the firm's debt.

For the three months ending September 30, the second largest US investment bank had net income of $2.2 billion, or $1.15 per share, compared to earnings of $131 million, or a seven-cent loss per share after preferred dividends, a year ago.

Revenues for the quarter totaled $9.9 billion, up 46 percent from $6.8 billion in the same period last year. The firm received a $3.4 billion boost in revenues related to a debt valuation adjustment, which stems from declines in the value of the company’s debt. A bank can record an accounting gain when its debt weakens in relation to US Treasuries, as it can profit from buying back the debt.

According to Bloomberg, analysts expected 30-cents per share in earnings, on $7.42 billion in sales.

"Morgan Stanley effectively navigated turbulent markets while consolidating our market share gains with Institutional clients and demonstrating resilience across the Global Wealth Management business as evidenced by record net new assets flows since the formation of [Morgan Stanley Smith Barney (MSSB) joint venture]," said president and CEO, James P. Gorman.

Revenues under the firm's institutional securities segment more than doubled to $6.45 billion during the quarter, from $2.90 billion a year earlier. Equity revenues increased to $1.96 billion from $925 million a year earlier, while fixed income and commodity revenues  climbed to $3.88 billion from $847 million a year ago.

Underwriting fees partially offset sales and trading gains, however, slipping 29 percent to $451 million. Advisory revenues rose 11 percent, to $413 million.

Meanwhile, higher asset management revenues and commissions boosted the firm's sales in its global wealth management unit to $3.3 billion, a three percent increase from $3.1 billion a year ago.

Commissions and fees increased 19 percent to $670 million, while asset management, distribution, and administrative fees hiked 16 percent to $1.78 billion.

At the quarter's end, Morgan Stanley had $1.6 trillion in total client assets, 30 percent of which were in fee-based accounts.

However, under its asset management segment, the bank posted $215 million in sales, down 73 percent from the $802 million reported a year ago, as strong sales from the traditional asset management business were offset by losses on principal investments in its merchant banking and real estate investing business.

In New York, Morgan Stanley shares gained nearly two percent in premarket trading, up to $16.94 as of 8:13 am EDT.

]]>
Wed, 19 Oct 2011 09:32:00 -0400 https://www.proactiveinvestors.com/companies/news/80683/morgan-stanley-swings-to-q3-profit-19855.html
<![CDATA[News - Morgan Stanley beats Street, despite turning a loss in Q2 ]]> https://www.proactiveinvestors.com/companies/news/78759/morgan-stanley-beats-street-despite-turning-a-loss-in-q2-16525.html Morgan Stanley (NYSE:MS) announced Thursday a loss in its second quarter earnings as it took a $1.7 billion hit due to the restructuring of an investment in Mitsubishi UFJ Financial Group, but still mnanaged to beat estimates.

For the three months ending June 30, the investment bank posted a loss of $558 million, or a $0.38 per share, compared to earnings of $1.58 billion, or $1.09 per share, a year ago.

The company's results included a $1.7 billion charge, or $1.02 per share, relating to the conversion of $7.8 billion worth of preferred stock held by Japan's Mitsubishi UFJ Financial Group.

In the quarter, earnings attributable to Morgan Stanley, which excludes the Mitsubishi charge, fell to $1.19 billion from $1.44 billion a year earlier.

Total revenues for the quarter rose 17% to $9.28 billion. Analysts had anticipated a wider loss of $0.62 per share, on revenues of $8.04 billion.

"While global markets remained challenging this quarter, the firm delivered higher year-over-year revenues across our three major business segments," said president and CEO, James P. Gorman.

"We also completed the previously announced preferred stock conversion with [Mitsubishi], resulting in a one-time, non-cash charge this quarter . . . and boosting the Firm's Tier 1 common ratio to an industry-leading level."

Morgan Stanley's Basel I common ratio rose 290 basis points to 14.6%, including 270 basis points attributed to the stock conversion.

The firm's institutional securities segment, which includes investment banking and trading, posted revenues of $5.2 billion, up 15% from $4.5 billion a year ago, and pre-tax profits of $1.5 billion, down 9% from $1.6 billion a year ago.

Equity sales and trading revenues rose to $1.9 billion, compared to $1.4 billion a year ago, reflecting higher results in the derivatives and prime brokerage businesses, the company said.

Fixed income and commodities sales and trading revenues slipped to $2.1 billion from $2.3 billion a year ago, as increased revenues from credit products were offset by lower results in commodities.

Underwriting revenues increased 57% to $940 million for the quarter, with equity underwriting revenues rising 56% year-over-year, and revenues from fixed income underwriting hiking 59% - the highest since the financial crisis, reflecting an improving economy.

Advisory fees rose to $533 million for the quarter, up 85% over the same period last year, reflecting higher revenues across all regions.

The global wealth management segment, which was driven by higher asset management revenues, saw net revenues of $3.48 billion, up 13%, and pre-tax earnings of $322 million compared to $207 million in the second quarter of 2010.

At the quarter's end, total client assets were $1.7 trillion, with net new assets for the quarter totaling $2.9 billion.
Morgan Stanley's asset management segment made $645 million in net revenues, up 57% year-over-year, and pre-tax income of $165 million, from an $86 million loss in the year-ago period, as distribution and administrative fees rose 12% to $2.11 billion.

Gains were also seen on principal investments in its real estate investing business, and higher results in the traditonal asset management business. Assets under management or supervision of $296 billion increased from $244 billion a year ago.

In other news, Morgan Stanley, whose stock on the New York Stock Exchange rose 7.18% to trade at $23.28 as of 11:02 am EDT, also announced its board of directors approved a 5-cent quarterly dividend, payable on August 15.

]]>
Thu, 21 Jul 2011 12:04:00 -0400 https://www.proactiveinvestors.com/companies/news/78759/morgan-stanley-beats-street-despite-turning-a-loss-in-q2-16525.html
<![CDATA[News - Morgan Stanley’s Fourth Quarter Profit Surges 60% ]]> https://www.proactiveinvestors.com/companies/news/75838/morgan-stanleys-fourth-quarter-profit-surges-60--11614.html Morgan Stanley (NYSE:MS) said Thursday its fourth quarter earnings were up 60% with strong performance across all its divisions.


For the fourth quarter ended December 31, the company had $600 million in profits available for common shareholders, or 42 cents per diluted share, compared with $376 million, or 29 cents per diluted share for the fourth quarter of 2009.  Revenue for the period was $7.8 billion, up from $6.8 billion last year. 


Analysts polled by Thomas Reuters expected the company to earn a profit of 35 cents on revenues of $7.35 billion. 


Revenues across the company’s institutional services, wealth management, and asset management divisions all increased 12%, 7%, and 68%, respectively.  Institutional services, Morgan Stanley’s largest division by revenue, saw profits rise by 47% year-over-year to $ 497 million. 


Morgan Stanley’s results are a stark contrast to Goldman Sach’s, which reported yesterday its fourth quarter profit dropped by 53%.  Although, like Goldman, Morgan Stanley’s trading operations also took a beating.  Morgan Stanley’s fourth quarter trading revenues  dropped 27% year-over-year to $854 million. 


For the full year, the company earned a profit of $3.6 billion, or $2.64 per diluted share, a large improvement over the previous year’s loss of $907 million, or 77 cents per diluted share.


Compensation expenses increased to $16 billion from $14.4 billion a year ago. Although, it fell as a proportion of revenues to 51% compared with 62% last year. 


The company said it had restructured its pay structure in recent years to increase the amount of deferred compensation.  The change is intended to link the performance of executives to that of the firm.  For 2010, the company had increased the proportion of deferred pay to 60% from 40% in 2009.   The number rose to 80% from 75% for the company’s Operating Committee members.  


As of 10 am EST, Morgan Stanley’s shares rallied roughly 2.3% to trade at $28.39.

]]>
Thu, 20 Jan 2011 15:06:00 -0500 https://www.proactiveinvestors.com/companies/news/75838/morgan-stanleys-fourth-quarter-profit-surges-60--11614.html
<![CDATA[News - Morgan Stanley fails to keep pace as it makes $91m loss ]]> https://www.proactiveinvestors.com/companies/news/74398/morgan-stanley-fails-to-keep-pace-as-it-makes-91m-loss-9364.html Morgan Stanley (NYSE: MS) made a loss of $91 million for the third quarter, compared to its rival Goldman Sachs, which yesterday reported profits of $1.9 billion.

The loss was due to a $229 million write down associated with its stake in the Atlantic City casino company, Revel Entertainment Group, which the bank plans to sell. Net loss was $0.07 per diluted share, compared with net income of $0.38 per diluted share in the third quarter of 2009.

Still, economic conditions were a large part of the bank's losses, as income from continuing operations totalled $313 million, or $0.05 per diluted share for the quarter ending September 30, 2010, versus income of $936 million, or $0.50 per diluted share for the prior year quarter.

Net revenues were down 20% for the period to $6.8 billion, including negative revenue of $731 million relating to the company's debt-related credit spreads, it said.

Institutional Securities made a pre-tax income of $240 million, versus $1.3 billion last year, on expected lower sales and trading, as well as underwriting revenues.

The asset management division bounced back, however, reporting a pre-tax income of $279 million, compared to a $124 million loss in Q3 2009. This was due to gains related to investments held by its real estate funds, the company said.

"Although we continued to make progress across some key businesses this quarter, our results in aggregate clearly do not reflect the true potential of Morgan Stanley's global client franchise and I am not satisfied with our overall performance," said president and CEO James P. Gorman.

Indeed, the results reflect that the bank is not able to keep up with its rivals in the face of the tough market conditions, raising its risk profile unlike its competitors. Goldman Sachs has held its own, posting profits of $1.9 billion yesterday, beating analyst estimates.

Expenses from compensation to the bank's employees decreased to $3.7 billion from $4.9 billion a year ago, reflecting lower compensation costs in the institutional securities segment.

Separately, the company announced a restructuring of its ownership of FrontPoint Partners, which will see FrontPoint's senior management and portfolio managers take a majority stake in the business, with Morgan Stanley retaining the minority. The deal is expected to close in the fourth quarter of this year.

Morgan Stanley's Tier 1 capital ratio, under Basel I, was approximately 16.5%. The company declared a quarterly dividend of $0.05 per common share.

]]>
Wed, 20 Oct 2010 18:20:00 -0400 https://www.proactiveinvestors.com/companies/news/74398/morgan-stanley-fails-to-keep-pace-as-it-makes-91m-loss-9364.html