Summary
Morgan Stanley's 2019 Form 10-K report details a solid financial year, with net revenues increasing to $41.4 billion and net income applicable to Morgan Stanley reaching $9.04 billion. The firm demonstrated resilience across its key business segments: Institutional Securities, Wealth Management, and Investment Management. Wealth Management saw revenue growth driven by an increase in fee-based client assets and transactional revenues. Investment Management experienced significant revenue growth primarily due to strong performance in private equity investments. The Institutional Securities segment showed stable revenues, with mixed performance across its sub-segments, including investment banking and sales & trading. The report highlights Morgan Stanley's robust capital and liquidity position, with Common Equity Tier 1 capital ratios remaining strong and exceeding regulatory minimums. The firm actively managed its capital through share repurchases and dividend payments, reflecting its commitment to shareholder returns, which was supported by the Federal Reserve's non-objection to its 2019 Capital Plan. Significant focus is placed on risk management across all business lines, with detailed discussions on market, credit, operational, liquidity, and legal/regulatory risks, including robust cybersecurity measures. The firm also provided updates on its ongoing transition from LIBOR and potential impacts of regulatory changes.
Financial Highlights
36 data points| Interest Expense | $12.40B |
| Net Income | $9.04B |
| EPS (Basic) | $5.26 |
| EPS (Diluted) | $5.19 |
| Shares Outstanding (Basic) | 1.62B |
| Shares Outstanding (Diluted) | 1.64B |
Key Highlights
- 1Net revenues increased to $41.4 billion in 2019, up from $40.1 billion in 2018.
- 2Net income applicable to Morgan Stanley was $9.04 billion in 2019, an increase from $8.75 billion in 2018.
- 3Wealth Management net revenues increased by 3% to $17.7 billion, driven by higher transactional revenues and growth in fee-based client assets.
- 4Investment Management net revenues surged by 37% to $3.8 billion, largely due to strong investment performance, particularly from an initial public offering within an Asia private equity fund.
- 5Common Equity Tier 1 capital ratio remained strong at 16.4% at year-end 2019, well above regulatory requirements.
- 6The firm returned capital to shareholders through share repurchases totaling $5.4 billion and dividends declared of $1.30 per share in 2019.
- 7Morgan Stanley is actively managing risks associated with the transition away from LIBOR, which is expected to be completed by the end of 2021.
- 8The report details significant legal proceedings, primarily related to residential mortgage and credit crisis matters, with potential financial implications that the firm is actively managing.