01—Abstract
Summary
Summary of the 10-K filed February 24, 2023. Cited figures are marked; the original filing is the authoritative source.
Morgan Stanley reported net revenues of $53.7 billiona and net income of $11.0 billion for the year ended December 31, 2022, navigating a challenging market environment characterized by elevated inflation and rising interest rates.
Despite a decrease in net revenues from $59.8 billionb in 2021, the Firm maintained a strong Common Equity Tier 1 capital ratio of 15.3%. The Institutional Securities segment experienced an 18% decline in net revenues, primarily due to lower Investment Banking activity, although this was partially offset by strong performance in Fixed Income. The Wealth Management segment demonstrated resilience, with net revenues increasing by 1% to $24.4 billion and adding $311 billion in net new assets.
The Investment Management segment saw a 14%c decrease in net revenues, reflecting lower performance-based income and asset management fees in a challenging market. The Firm continues to focus on its strategic goals, including integrating recent acquisitions and managing risks across its global operations. Despite the headwinds, Morgan Stanley maintained robust capital and liquidity positions, underscoring its financial strength.
02—Key points
Key Highlights
- Net revenues for the year ended December 31, 2022, were $53.7 billion, a decrease from $59.8 billion in 2021.
- Net income attributable to Morgan Stanley was $11.0 billion, or $6.15 per diluted common share, down from $15.0 billion, or $8.03 per diluted common share in 2021.
- The Firm's Common Equity Tier 1 capital ratio remained strong at 15.3% as of December 31, 2022.
- Institutional Securities net revenues decreased by 18% to $24.4 billion, primarily due to lower Investment Banking revenues.
- Wealth Management net revenues increased by 1% to $24.4 billion, with a pre-tax margin of 27.0%, and added $311 billion in net new assets.
- Investment Management net revenues decreased by 14% to $5.4 billion, reflecting market conditions and lower performance-based income.
- Total compensation and benefits expenses decreased by 6% to $23.1 billion, while non-compensation expenses increased by 5% to $16.2 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 24, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Interest Expense | $12.27B$1.37B | +798.1% |
| Net Income | $11.03B$15.03B | −26.6% |
| EPS (Basic) | $6.23$8.16 | −23.7% |
| EPS (Diluted) | $6.15$8.03 | −23.4% |
| Shares Outstanding (Basic) | 1.69B1.78B | −5.3% |
| Shares Outstanding (Diluted) | 1.71B1.81B | −5.6% |
05—Questions
Frequently Asked Questions
What was Morgan Stanley's financial performance in 2022 compared to 2021?
In 2022, Morgan Stanley reported net revenues of $53.7 billion and net income of $11.0 billion, a decrease from $59.8 billion in net revenues and $15.0 billion in net income in 2021. This decline was primarily driven by a challenging macroeconomic environment impacting investment banking activity and investment management performance.
How did the different business segments perform in 2022?
The Institutional Securities segment's net revenues decreased by 18% due to lower investment banking revenues, though fixed income performance was strong. Wealth Management showed resilience with a 1% increase in net revenues and significant net new asset inflows. Investment Management's net revenues decreased by 14% due to market conditions affecting performance-based income and asset management fees.
What is Morgan Stanley's capital position as of December 31, 2022?
Morgan Stanley maintained a strong capital position, with a Common Equity Tier 1 capital ratio of 15.3% as of December 31, 2022. The Firm's Tier 1 capital ratio was 17.2%, and its Tier 1 leverage ratio was 6.7%.
What were the key expenses for Morgan Stanley in 2022?
Total compensation and benefits expenses decreased by 6% to $23.1 billion in 2022 compared to 2021, primarily due to lower incentive compensation tied to revenues and lower stock-based compensation. Non-compensation expenses increased by 5% to $16.2 billion, mainly driven by higher technology spending and legal expenses.
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