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- Morgan Stanley MS reported Q1 web revenues of $14.5 billion, down from $14.8 billion a 12 months in the past, exceeding the consensus of $13.9 billion.
- Institutional Securities web revenues declined to $6.8 billion from $7.7 billion in Q1 2022, owing to a decline in Funding Banking (-24% Y/Y), Fairness (-14% Y/Y), and Fastened Earnings (-12% Y/Y) revenues.
- Wealth Administration enterprise web income rose to $6.6 billion from $5.9 billion a 12 months in the past, led by mark-to-market features on investments associated to sure staff’ deferred compensation plans. The enterprise attracted stable new property of $110 billion in Q1.
- The expense effectivity ratio elevated to 72% from 69% within the year-ago quarter, with integration-related bills of $77 million.
- Web revenue declined to $3.0 billion from $3.7 billion a 12 months in the past, with EPS of $1.70 beating the consensus of $1.62.
- Provision for credit score losses elevated considerably to $234 million from $57 million a 12 months in the past, reflecting a deterioration within the macroeconomic outlook from final 12 months.
- Frequent Fairness Tier 1 capital ratio stood at 15.1% in comparison with 14.5% a 12 months in the past.
- Belongings Below Administration (AUM) stood at $1.4 billion, reflecting a decline in asset worth from a 12 months in the past.
- MS repurchased shares of $1.5 billion and declared a quarterly dividend of $0.775 in Q1 2023.
- “The Agency delivered sturdy outcomes with a ROTCE of 17% in a really uncommon setting, demonstrating the energy of our enterprise mannequin. The investments we have now made in our Wealth Administration enterprise proceed to bear fruit as we added a strong $110 billion in web new property this quarter. Fairness and Fastened Earnings revenues had been sturdy, though Funding Banking exercise continued to be constrained,” said James P. Gorman, Chairman and CEO.
- Worth Motion: MS shares are buying and selling decrease by 3.44% at $86.76 premarket on the final examine Wednesday.
- Picture by way of Wikimedia Commons
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