Summary
Morgan Stanley's 2011 10-K filing reveals a global financial services firm operating across three main segments: Institutional Securities, Global Wealth Management Group, and Asset Management. The company navigated a challenging economic landscape in 2011, marked by European sovereign debt concerns and slowing global growth, which impacted its financial performance compared to 2010. Despite a slight increase in net revenues to $32.4 billion, net income applicable to Morgan Stanley decreased to $4.11 billion from $4.70 billion in the prior year. This decline was influenced by factors such as a significant negative adjustment related to the conversion of MUFG's preferred stock, losses from the company's stake in a Japanese securities joint venture, and increased losses from monoline insurers. The company's capital ratios remained strong, exceeding regulatory requirements, and it continued to manage its liquidity prudently. Investors should note the company's ongoing efforts to adapt to the evolving regulatory environment, particularly the implementation of the Dodd-Frank Act and Basel III.
Financial Highlights
45 data points| Revenue | $32.23B |
| Operating Income | $4.17B |
| Interest Expense | $6.88B |
| Net Income | $4.11B |
| EPS (Basic) | $1.25 |
| EPS (Diluted) | $1.23 |
| Shares Outstanding (Basic) | 1.65B |
| Shares Outstanding (Diluted) | 1.68B |
Key Highlights
- 1Net revenues increased to $32.4 billion in 2011, up from $31.4 billion in 2010.
- 2Net income applicable to Morgan Stanley decreased to $4.11 billion in 2011 from $4.70 billion in 2010.
- 3Institutional Securities segment income from continuing operations before income taxes was $4.58 billion in 2011, an increase from $4.37 billion in 2010, driven by strong equity sales and trading revenues.
- 4Global Wealth Management Group income from continuing operations before income taxes increased to $1.28 billion in 2011 from $1.16 billion in 2010.
- 5Asset Management segment income from continuing operations before income taxes decreased to $253 million in 2011 from $718 million in 2010, largely due to lower principal transaction gains and performance fees.
- 6The company's capital ratios remained robust, with a Tier 1 common capital ratio of 13.0% at December 31, 2011.
- 7Morgan Stanley continues to manage its liquidity through a comprehensive framework, including a Global Liquidity Reserve of $182 billion at December 31, 2011.