Morgan Stanley released the earnings results from the first quarter before opening bell this morning, posting earnings of $1.14 per share on $9.8 billion in revenue, excluding DVA. Analysts had been expecting earnings of 77 cents per share on $9.16 billion in revenue.
The firm continues the trend of very strong first quarter earnings from the nation’s largest banks.
Key metrics from Morgan Stanley’s earnings report
Including DVA, net revenues were $9.9 billion, and earnings per share were $1.18 or $2.4 billion. In the same quarter last year, reported net revenues were $9 billion, while earnings were 74 cents per share or $1.5 billion. The first quarter of this year included a benefit of 29 cents per share related to taxes.
Excluding DVA, last year’s first quarter net revenues were $8.9 billion, while earnings were 70 cents per share or $1.4 billion.
“This was our strongest quarter in many years with improved performance across most areas of the firm,” said Morgan Stanley Chairman and CEO James Gorman in a statement this morning. “It reflects our ongoing strategy to build platforms for growth while maintaining a prudent risk profile and disciplined expense management.”
Morgan Stanley’s earnings by segment
The firm’s Institutional Securities saw net revenues of $5.5 billion, excluding DVA, compared to last year’s $4.7 billion. Pretax income from continuing operations was $1.8 billion, compared to last year’s $1.4 billion.
Morgan Stanley recorded $3.8 billion in net revenues, compared to last year’s 3.6 billion for its Wealth Management segment. The segment saw $855 million in pretax income from continuing operations, compared to last year’s $686 million.
The firm reported $669 million in net revenues for its Investment Management business, which had $406 billion in assets under supervision during the quarter. That compares to last year’s net revenues of $752 million. The segment’s pretax income from operations was $187 million, compared to last year’s $268 million.
Morgan Stanley’s capital position
As of the end of March, Morgan Stanley had a Common Equity Tier 1 risk-based capital ratio of about 13.1% under the Basel III Advanced Approach. Its Tier 1 risk-based capital ratio was about 14.7%. The firm’s book value per share was $33.80, while its tangible book value per share was $28.91 per share as of the end of the quarter.