Morgan Stanley (NYSE:MS) released its second quarter results this morning, posting earnings of 60 cents per share on net revenues of $8.6 billion. Excluding DVA, net revenues were $8.5 billion. Analysts had been expecting earnings of 58 cents per share on $8.41 billion in revenue. Reported earnings per share were 94 cents compared to 43 cents per share in the same quarter a year ago.
Breaking down Morgan Stanley’s earnings
The firm reported Wealth Management revenue of $3.7 billion, compared to $3.5 billion in the same quarter a year ago. Fee-based asset flows were $12.5 billion. Morgan Stanley had record client wealth management client assets under management of $2 trillion with a 21% pretax margin.
Morgan Stanley reported net revenues of $4.2 billion excluding DVA for its Institutional Securities division. The firm’s Investment Management segment reported $692 million in net revenues with $396 million in assets under management. FICC revenue was $1 billion, compared to $1.2 billion in the same quarter last year.
James P. Gorman, Chairman and CEO of Morgan Stanley, said in a statement, “Our quarterly results demonstrated solid performance, despite a muted operating environment. We are seeing momentum across our businesses, with particular strength in Investment Banking, Equity Sales & Trading and Wealth Management – where profit margins hit 21% for the first time since the founding of the JV and assets entrusted to us by clients reached $2 trillion.”
Morgan Stanley updates capital
At the end of June, book value was $33.48 per share, while tangible book value was $28.53 per share. That’s based on about 2 billion outstanding shares. Morgan Stanley reported a Basel III Advanced Common Equity Tier 1 capital ratio of 13.8% as of the end of June. The firm’s Tier 1 risk-based capital ratio was 15.2%.
The firm declared a quarterly dividend of 10 cents per share. That’s payable on Aug. 15 to shareholders of record on July 31. During the June quarter, Morgan Stanley bought back about $284 million of its common stock or about 9.3 million shares. The firm said it will buy up to $1 billion worth of its stock starting in the second quarter through the first quarter of next year.