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Morgan Stanley earnings hit by one time charges as revenue rises

Published 16/01/2024, 13:51
© Reuters.  Morgan Stanley earnings hit by one time charges as revenue rises
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Proactive Investors - Morgan Stanley (NYSE:MS) shares moved higher after the bank’s fourth quarter revenue topped estimates, driven by strength in its investment banking segment.

Shares of Morgan Stanley had gained 1.2% at US$90.81 before the stock market opened on Tuesday.

For the quarter ended December 31, 2023, Morgan Stanley (NYSE:MS) posted revenue of $12.9 billion, above Wall Street estimates of $12.7 billion.

Revenue from investment banking rose from $4.8 billion in the year-ago quarter to $4.9 billion.

However, its earnings per share of $0.85 were down from $1.26 in the year-ago quarter and missed expectations of $1.05 per share.

Dragging on its profits were two one-time regulatory charges, $286 million related to a Federal Deposit Insurance Corporation special assessment and a $249 million legal charge.

For the full year, Morgan Stanley reported revenues of $54.1 billion, down from $53.7 billion for the previous year but above estimates of $53.39 billion.

Earnings were below estimates of $5.40 per share at $5.18 per share, down from $6.15 per share for 2022.

"In 2023, the Firm reported a solid return on tangible equity (ROTCE) against a mixed market backdrop and a number of headwinds,” Morgan Stanley CEO Ted Pick said in a statement.

“We begin 2024 with a clear and consistent business strategy and a unified leadership team.”

Read more on Proactive Investors UK

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