Morgan Stanley reported fourth-quarter earnings on Tuesday that exceeded Wall Road expectations, boosted by the financial institution’s report revenues from wealth administration.
This is what the financial institution did:
- Earnings: $1.31 a share, adjusted
- Income: $12.75 billion, versus $12.64 billion, based on Refinitiv
Within the fourth quarter, Morgan Stanley’s web revenue fell to $2.11 billion, or $1.26 per share, from $3.59 billion, or $2.01 per share, a 12 months in the past. After changes, Morgan Stanley mentioned it earned $1.31 per share.
The financial institution’s wealth administration reported web revenues of $6.63 billion within the newest quarter, 6% greater than a 12 months in the past and bringing the full-year quantity to a report $24.4 billion. The end result was helped by a rise in web curiosity revenue on greater rates of interest and financial institution lending progress, the financial institution mentioned.
“We reported solid fourth quarter results amidst a difficult market environment,” Chairman and CEO James Gorman mentioned in a press release.
Within the newest interval, the financial institution put aside $85 million for credit score losses, in comparison with simply $5 million in the identical quarter a 12 months in the past.
Morgan Stanley’s funding banking, buying and selling and funding administration operations have been impacted by the intense volatility final quarter. Wall Road banks are grappling with the collapse in IPOs and debt and fairness issuance amid the market turmoil pushed by the Federal Reserve’s aggressive price hikes.
The New York-based agency lower about 2% of its employees in December, which impacted about 1,600 of the corporate’s 81,567 staff and touched almost each nook of the worldwide funding financial institution.
Shares of Morgan Stanley have climbed almost 8% 12 months to this point following a 13% pullback final 12 months.
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