Benzinga -
- Morgan Stanley (NYSE: MS) reported Q1 net revenues of $14.5 billion, down from $14.8 billion a year ago, exceeding the consensus of $13.9 billion.
- Institutional Securities net revenues declined to $6.8 billion from $7.7 billion in Q1 2022, owing to a decline in Investment Banking (-24% Y/Y), Equity (-14% Y/Y), and Fixed Income (-12% Y/Y) revenues.
- Wealth Management business net revenue rose to $6.6 billion from $5.9 billion a year ago, led by mark-to-market gains on investments related to certain employees’ deferred compensation plans. The business attracted solid new assets of $110 billion in Q1.
- The expense efficiency ratio increased to 72% from 69% in the year-ago quarter, with integration-related expenses of $77 million.
- Net income declined to $3.0 billion from $3.7 billion a year ago, with EPS of $1.70 beating the consensus of $1.62.
- Provision for credit losses increased significantly to $234 million from $57 million a year ago, reflecting a deterioration in the macroeconomic outlook from last year.
- Common Equity Tier 1 capital ratio stood at 15.1% compared to 14.5% a year ago.
- Assets Under Management (AUM) stood at $1.4 billion, reflecting a decline in asset value from a year ago.
- MS repurchased shares of $1.5 billion and declared a quarterly dividend of $0.775 in Q1 2023.
- “The Firm delivered strong results with a ROTCE of 17% in a very unusual environment, demonstrating the strength of our business model. The investments we have made in our Wealth Management business continue to bear fruit as we added a robust $110 billion in net new assets this quarter. Equity and Fixed Income revenues were strong, although Investment Banking activity continued to be constrained,” stated James P. Gorman, Chairman and CEO.
- Price Action: MS shares are trading lower by 3.44% at $86.76 premarket on the last check Wednesday.
- Photo via Wikimedia Commons