Morgan Stanley (MS) Tops Estimates For Q2

Morgan Stanley (MS) Tops Estimates For Q2
<a href="">AnandKZ</a> / Pixabay

Morgan Stanley released its second quarter earnings report before opening bell this morning, posting earnings of 79 cents per share, excluding DVA, on $9.6 billion in revenue. Net earnings were 85 cents per share. In last year’s second quarter, net earnings were 92 cents per share and net revenue was $8.6 billion excluding DVA. Analysts were expecting earnings of 73 cents per share and $9.1 billion in revenue.

Key metrics from Morgan Stanley’s earnings report

Excluding DVA, Morgan Stanley’s earnings were 95 cents per share, while its revenue was $9.7 billion. In last year’s second quarter, net earnings were 92 cent per share and net revenue was $8.6 billion excluding DVA.

Net revenues from the Institutional Securities segment were $5 billion excluding DVA. Morgan Stanley reported solid performance in Equity sales and trading, Fixed Income, Commodities sales and trading, and Investment Banking. Revenues from Wealth Management were $751 million. Assets under management or supervision were $403 billion.

George Soros And The Human Uncertainty Principle

The division between academic economics and the way traders look at the market is deep. The efficient market hypothesis assumes that markets and valuations are always pushing towards an equilibrium, and evidence to the contrary gets pushed aside as fluctuations or statistical deviations. But the dot com bubble, the

Morgan Stanley’s earnings by segment

Morgan Stanley reported income of $1.6 billion in its Institutional Securities business, compared to $960 million last year. Revenues from the Advisory business were flat at $423 million, while Equity sales and trading revenues rose from $1.8 billion to $2.3 billion. Fixed Income and Commodities posted revenues of $1.3 billion, an increase from last year’s $1 billion.

Wealth Management revenues income increased to $885 million. Within the segment, revenues from asset management fees increased slightly to $2.2 billion. Transactional revenues declined to $872 million. Total client assets under management were $2 trillion.

The Investment Management business recorded income of $220 million during the second quarter. Net revenues were $751 million, an increase of $705 million, in the firm’s Merchant Banking and Real Estate Investment business. Morgan Stanley had $403 billion in assets under management in the segment as of the end of the quarter, compared to last year’s $399 billion.

Morgan Stanley updates capital ratios

As of the end of June, Morgan Stanley had a Common Equity Tier 1 Basel III Advanced ratio of 14% and a Tier 1 risked=based capital ratio of 15.7%. The firm’s pro forma fully phased-in Common Equity Tier 1 ratio was 12.5%, while its Supplementary Leverage ratio was about 5.3%. Morgan Stanley’s book value per share was $34.52, while its tangible book value per share was $29.54.

As of this writing, shares of Morgan Stanley were up 2.9% at $41.40 per share in premarket trading.

No posts to display