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MS · MORGAN STANLEY

50 filings

10-Q

MS 10-Q Quarterly Reports

MORGAN STANLEY - 50 quarterly reports

Filing record · 2016–202610-K1110-Q328-K118

MS filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 118 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Deal closed8-K · Jul ’19Jul ’19
  3. Leadership change8-K · May ’21May ’21
  4. Leadership change8-K · Jun ’25Jun ’25
  1. 2026-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2026

    Morgan Stanley reported a strong second quarter of 2026, driven by robust performance across its business segments. Net revenues increased significantly to $21.3 billion, a 27% rise year-over-year, with net income applicable to Morgan Stanley common shareholders growing 58% to $5.6 billion. Diluted earnings per share saw a substantial increase of 62% to $3.46. The Institutional Securities segment was a key contributor, with net revenues up 44% driven by strong performance in Equity and Investment Banking. Wealth Management also demonstrated solid growth, with net revenues up 14%, supported by higher asset management revenues, increased net interest income, and greater client activity. Investment Management reported a 6% increase in net revenues, largely due to higher average Assets Under Management (AUM) driven by market levels and positive net flows. The firm maintained a strong capital position, with a Standardized Common Equity Tier 1 capital ratio of 14.9%. Profitability metrics were also impressive, with Return on Equity (ROE) at 20.7% and Return on Tangible Common Equity (ROTCE) at 26.6%, exceeding the firm's 20% ROTCE goal. The expense efficiency ratio remained stable at 65%, indicating effective cost management amidst continued investment.

    Aug 4, 2026
  2. 2026-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2026

    Morgan Stanley reported strong financial results for the first quarter of 2026, demonstrating robust performance across its key business segments. Net revenues increased by 16% year-over-year to $20.6 billion, while net income applicable to common shareholders rose by 29% to $5.4 billion. Diluted earnings per share also saw a significant increase, up 32% to $3.43. The firm's Return on Equity (ROE) improved to 21.0% and Return on Tangible Common Equity (ROTCE) to 27.1%, reflecting effective capital utilization. The Institutional Securities segment was a key driver of this growth, with net revenues up 19% driven by strong performance in the Markets business and increased Investment Banking revenues, particularly in Advisory. Wealth Management also posted solid gains, with net revenues up 16% and a healthy pre-tax margin of 30.4%, supported by strong asset management revenues and net interest income. Investment Management's net revenues saw a slight decline of 4%, mainly due to lower carried interest, but still contributed positively with $3.3 billion in long-term net flows. Operationally, the firm maintained an expense efficiency ratio of 65%, indicating effective cost management alongside continued investment. The firm's capital position remains strong, with a Standardized Common Equity Tier 1 capital ratio of 15.1%. During the quarter, Morgan Stanley repurchased $1.75 billion of its common stock and announced a quarterly dividend of $1.00 per share. The firm also made a strategic move by completing the acquisition of Morgan Stanley Europe SE by MSBNA, aimed at integrating operations and enhancing its U.S. banking capabilities.

    May 5, 2026
  3. 2025-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2025

    Morgan Stanley reported strong financial results for the third quarter of 2025, with net revenues of $18.2 billion, a 18% increase year-over-year, and net income applicable to Morgan Stanley of $4.6 billion, up 45% from the prior year quarter. This growth was driven by robust performance across all key business segments. Institutional Securities saw a significant 25% increase in net revenues, largely due to strong equity performance and a rebound in investment banking, particularly underwriting. Wealth Management also demonstrated impressive growth, with net revenues up 13% year-over-year, supported by higher asset management and transactional revenues, alongside an increase in net interest income. The segment added $81 billion in net new assets, with $42 billion in fee-based asset flows, indicating continued client engagement. Investment Management also experienced a 13% increase in net revenues, driven by higher assets under management due to favorable market levels and increased performance-based income. The firm maintained a strong capital position, with a Common Equity Tier 1 capital ratio of 15.1% and a Supplementary Leverage Ratio of 5.5%. The company also announced a common stock dividend of $1.00 per share, payable in November 2025, and continued its share repurchase program, demonstrating a commitment to returning capital to shareholders while investing in its growth initiatives.

    Nov 3, 2025
  4. 2025-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2025

    Morgan Stanley's second quarter 2025 results show robust performance across its key business segments, with net revenues increasing by 12% year-over-year to $16.8 billion and net income applicable to Morgan Stanley up 15% to $3.5 billion. This growth was driven by strong contributions from the Institutional Securities segment, particularly its Markets business, and solid revenue generation in Wealth Management, supported by increased asset and transactional revenues. The firm also saw improved performance in its Investment Management segment, benefiting from higher average Assets Under Management (AUM) and positive net flows. Key financial metrics highlight the firm's operational strength, with Return on Equity (ROE) at 13.9% and Return on Tangible Common Equity (ROTCE) at 18.2%. The firm maintained a solid Common Equity Tier 1 (CET1) capital ratio of 15.0% under the standardized approach, indicating strong capital adequacy. Despite an increase in expenses, partly due to higher compensation-related costs and technology investments, the firm's expense efficiency ratio remained disciplined at 71%. The provision for credit losses saw an increase, reflecting portfolio growth and a cautious macroeconomic outlook, particularly impacting corporate and commercial real estate loans.

    Aug 4, 2025
  5. 2025-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2025

    Morgan Stanley's first quarter 2025 results demonstrate robust performance, with net revenues of $17.7 billion, a 17% increase year-over-year, and net income of $4.3 billion, up 26% from the prior year quarter. This growth was driven by strong contributions across all business segments, particularly Institutional Securities, which saw a 28% revenue increase driven by Equity and Investment Banking activities, and Wealth Management, which delivered solid revenue growth and added significant net new assets. The firm also reported improved profitability metrics, with Return on Equity (ROE) at 17.4% and Return on Tangible Common Equity (ROTCE) at 23.0%, exceeding their stated goals. Despite a challenging economic environment marked by increased uncertainty and market volatility, Morgan Stanley maintained a strong capital position with a Common Equity Tier 1 capital ratio of 15.3% under the standardized approach. The firm also managed expenses effectively, with an expense efficiency ratio of 68%, though it did incur $144 million in severance costs related to a workforce reduction impacting approximately 2% of its global workforce. Overall, the report indicates a positive financial quarter for Morgan Stanley, characterized by broad-based growth and solid profitability.

    May 5, 2025
  6. 2024-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2024

    Morgan Stanley reported a strong third quarter of 2024, with net revenues increasing by 16% year-over-year to $15.4 billion and net income applicable to Morgan Stanley common shareholders rising by 32% to $3.2 billion. Diluted earnings per common share saw a 36% increase to $1.88. These results reflect robust performance across all key business segments: Institutional Securities, Wealth Management, and Investment Management. The Institutional Securities segment benefited from higher client activity in Equity and Fixed Income, along with increased underwriting revenues in Investment Banking. Wealth Management demonstrated strong net revenue growth, driven by higher asset management and transactional revenues, and continued to grow client assets to $6 trillion. Investment Management also saw increased net revenues, primarily due to higher average Assets Under Management (AUM). The firm maintained a solid capital position, with a Standardized Common Equity Tier 1 capital ratio of 15.1%. The reported Return on Equity (ROE) was 13.1% and Return on Tangible Common Equity (ROTCE) was 17.5% for the quarter. Expenses were managed effectively, with an expense efficiency ratio of 72%. The provision for credit losses decreased significantly compared to the prior year quarter, indicating improved credit conditions.

    Nov 4, 2024
  7. 2024-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2024

    Morgan Stanley reported strong financial results for the quarter ended June 30, 2024, with net revenues of $15.0 billion, a 12% increase year-over-year, and net income applicable to Morgan Stanley common shareholders rising 41% to $3.1 billion. This performance was driven by robust activity across its business segments. Institutional Securities saw a 23% revenue increase, largely due to strong Equity and Investment Banking performance, particularly in debt underwriting. Wealth Management delivered a solid pre-tax margin of 26.8% with net revenues of $6.8 billion, supported by higher asset management revenues from cumulative fee-based flows and favorable market conditions, experiencing $26 billion in fee-based asset flows for the quarter. Investment Management also showed growth, with net revenues up 8% driven by increased asset management revenues on higher average assets under management. The Firm maintained a strong capital position, with its Common Equity Tier 1 capital ratio at 15.2%. The reported Return on Equity (ROE) was 13.0%, and Return on Tangible Common Equity (ROTCE) was 17.5%, indicating efficient capital utilization. The expense efficiency ratio remained steady at 72%. While the overall economic environment improved, management noted ongoing risks from geopolitical factors, inflation, and interest rate uncertainty, which could continue to impact capital markets and the Firm's businesses. The provision for credit losses decreased significantly year-over-year, primarily due to improved macroeconomic outlook and lower provisions related to commercial real estate, though specific commercial real estate loans, particularly in the office sector, continue to be monitored.

    Aug 5, 2024
  8. 2024-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2024

    Morgan Stanley reported solid financial results for the first quarter of 2024, with net revenues of $15.1 billion, a 4% increase year-over-year, and net income applicable to common shareholders of $3.3 billion, up 19% year-over-year. This growth was driven by strong performance across all its key business segments: Institutional Securities, Wealth Management, and Investment Management. The firm achieved a Return on Equity (ROE) of 14.5% and a Return on Tangible Common Equity (ROTCE) of 19.7%, demonstrating improved profitability. The Institutional Securities segment saw a 3% increase in net revenues, bolstered by strong underwriting and equity performance, despite a slight dip in advisory. Wealth Management delivered robust net revenues of $6.9 billion, up 5%, with significant net new assets of $95 billion and strong pre-tax margins of 26.3%. Investment Management also contributed positively, with net revenues up 7% driven by higher assets under management. The firm maintained a strong capital position, with a Standardized Common Equity Tier 1 capital ratio of 15.0%.

    May 3, 2024
  9. 2023-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2023

    Morgan Stanley's third quarter 2023 results demonstrated resilience with net revenues of $13.3 billion and net income of $2.4 billion, translating to a Return on Equity (ROE) of 10.0% and a Return on Tangible Common Equity (ROTCE) of 13.5%. While overall net revenues saw a modest increase year-over-year, the performance across business segments varied. The Institutional Securities segment experienced a decrease in net revenues primarily due to lower Investment Banking and Fixed Income results, although Equity trading showed improvement. Conversely, Wealth Management delivered strong results with a 5% increase in net revenues driven by higher asset management fees and continued positive fee-based flows of $22.5 billion. Investment Management also saw a 14% increase in net revenues, benefiting from higher asset management and related fees on increased Assets Under Management (AUM). The firm maintained a solid capital position with a Standardized Common Equity Tier 1 capital ratio of 15.6%. The provision for credit losses increased, notably due to conditions in the commercial real estate sector, particularly office properties.

    Nov 3, 2023
  10. 2023-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2023

    Morgan Stanley reported net revenues of $13.5 billion and net income of $2.2 billion for the second quarter of 2023, representing a slight increase in revenue but a decrease in net income compared to the prior year quarter. The firm's ROTCE was 12.1%. The Wealth Management segment showed strong revenue growth, driven by higher net interest income and positive impacts from deferred compensation plan investments. However, the Institutional Securities segment experienced declines in net revenues, primarily due to lower client activity in Investment Banking and in Equity and Fixed Income businesses amidst a challenging market environment. The firm maintained a robust capital position, with a Common Equity Tier 1 capital ratio of 15.5%. Management highlighted efforts to manage expenses, including severance costs and integration expenses, and noted the continued focus on strategic initiatives across all business segments.

    Aug 3, 2023
  11. 2023-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2023

    Morgan Stanley reported net revenues of $14.5 billion and net income of $3.0 billion for the first quarter of 2023, a slight decrease from the prior year's $14.8 billion in net revenues and $3.7 billion in net income. The firm's Return on Tangible Common Equity (ROTCE) was 16.9%, and its expense efficiency ratio was 72%. The Institutional Securities segment saw a 11% decline in net revenues due to lower Investment Banking and Equity/Fixed Income results, partially offset by higher 'Other' revenues. Wealth Management, however, experienced an 11% increase in net revenues, driven by positive mark-to-market gains on deferred compensation plan investments and higher net interest income, despite increased expenses and provisions for credit losses. Investment Management's net revenues decreased by 3%, reflecting lower average assets under management due to market declines. For the quarter, the firm repurchased $1.5 billion of its common stock and announced a quarterly dividend of $0.775 per share. The firm's capital position remains strong, with a Common Equity Tier 1 capital ratio of 15.1% under the standardized approach. The provision for credit losses significantly increased to $234 million, primarily due to a deteriorating macroeconomic outlook and expectations for commercial real estate borrowers. Management highlighted that recent stresses in the banking sector have not significantly impacted Morgan Stanley's results or financial condition.

    May 2, 2023
  12. 2022-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2022

    Morgan Stanley's third quarter of 2022 report shows net revenues of $13.0 billion, a decrease from $14.8 billion in the prior year quarter, reflecting a volatile market backdrop. Net income applicable to Morgan Stanley was $2.6 billion, or $1.47 per diluted share, down from $3.7 billion, or $1.98 per diluted share, in the prior year quarter. The firm's ROTCE (Return on Tangible Common Equity) was 14.6%, or 15.2% excluding integration-related expenses. The Institutional Securities segment experienced a 22% decline in net revenues, primarily due to lower investment banking and equity results, though fixed income performance was strong. Wealth Management demonstrated resilience with a 3% increase in net revenues, driven by higher net interest income, and added $65 billion in net new assets for the quarter. Investment Management saw a 20% decrease in net revenues amidst a challenging market environment. Total assets remained relatively stable at $1.16 trillion. The firm maintained strong capital ratios, with a Common Equity Tier 1 capital ratio of 14.8% under the standardized approach. Liquidity resources were robust, with total liquidity resources of $308 billion, and the firm remained compliant with regulatory liquidity requirements. The company also announced a quarterly dividend of $0.775 per share and a significant new share repurchase authorization of up to $20 billion.

    Nov 3, 2022
  13. 2022-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2022

    Morgan Stanley's (MS) Q2 2022 filing shows net revenues of $13.1 billion, a decrease from $14.8 billion in the prior year quarter, reflecting a challenging macroeconomic environment. Net income applicable to Morgan Stanley common shareholders was $2.39 billion, down from $3.41 billion year-over-year. The firm's diversified business model, however, demonstrated resilience, particularly in its Wealth Management and Investment Management segments. Despite headwinds, Wealth Management reported a strong pre-tax margin of 26.5% and significant net new assets of $53 billion. Institutional Securities' performance was impacted by reduced investment banking activity due to economic uncertainty, although Fixed Income and Equity businesses saw client engagement amidst market volatility. The firm maintained a strong capital position, with a Standardized Common Equity Tier 1 capital ratio of 15.2% at June 30, 2022. Expenses were managed, though impacted by a $200 million regulatory matter related to unapproved personal devices and record-keeping. Management remains focused on strategic objectives, including the integration of recent acquisitions and driving long-term shareholder value through dividends and share repurchases.

    Aug 5, 2022
  14. 2022-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2022

    Morgan Stanley reported solid results for the first quarter of 2022, with net revenues of $14.8 billion, slightly down from $15.7 billion in the prior year quarter. Net income applicable to Morgan Stanley common shareholders was $3.54 billion, or $2.02 per diluted share, compared to $3.98 billion, or $2.19 per diluted share, in the first quarter of 2021. The firm's ROTCE (Return on Tangible Common Equity) was 19.8%, demonstrating resilience in a volatile market. The Institutional Securities segment saw an 11% decline in net revenues to $7.66 billion, primarily due to lower underwriting revenues, though Equity and Fixed Income businesses performed strongly. Wealth Management delivered stable net revenues of $5.94 billion and a strong pre-tax margin of 26.5%, with significant net new assets of $142 billion. The Investment Management segment's net revenues increased by 2% to $1.34 billion, boosted by incremental fee-based revenues from the Eaton Vance acquisition. Financially, Morgan Stanley maintained a strong capital position, with its standardized Common Equity Tier 1 capital ratio at 14.5% as of March 31, 2022. The firm managed expenses effectively, achieving an efficiency ratio of 69%, while continuing to invest in its businesses. The firm also continued its capital return program, repurchasing $2.87 billion of common stock and announcing a $0.70 per share dividend. While direct exposure to Russia and Ukraine is limited, the firm is monitoring geopolitical impacts.

    May 4, 2022
  15. 2021-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2021

    Morgan Stanley's (MS) third quarter of 2021 showcased robust financial performance, with net revenues reaching $14.8 billion and net income soaring to $3.7 billion, marking significant year-over-year increases. This growth was broadly distributed across its key business segments: Institutional Securities, Wealth Management, and Investment Management. The Institutional Securities segment saw strong performance driven by record investment banking revenues, particularly in advisory services, and continued strength in equities. Wealth Management also delivered impressive results, with record asset management revenues and substantial net new asset inflows, supported by the integration of E*TRADE. The Investment Management segment benefited from increased fee-based asset management revenues, bolstered by the recent acquisition of Eaton Vance. Overall, the firm demonstrated improved profitability, with an annualized ROTCE of 19.6% (or 20.2% excluding integration expenses) and an expense efficiency ratio of 67% (66% excluding integration expenses). The Common Equity Tier 1 capital ratio stood strong at 16.0%, indicating a solid capital position. Investors can find reassurance in the firm's consistent execution and strategic growth across its diversified business lines.

    Nov 3, 2021
  16. 2021-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2021

    Morgan Stanley's second quarter 2021 results demonstrate robust performance, with firm net revenues increasing by 8% and net income applicable to Morgan Stanley growing by 10% year-over-year. This growth was driven by strong contributions across all three business segments: Institutional Securities, Wealth Management, and Investment Management. The firm reported an annualized ROTCE of 18.6%, or 19.0% excluding integration-related expenses, and maintained a solid expense efficiency ratio of 69% (68% excluding integration costs). Key strategic initiatives are also evident, with Morgan Stanley doubling its quarterly common stock dividend to $0.70 per share and increasing its share repurchase authorization to $12 billion over the next 12 months. The acquisitions of E*TRADE and Eaton Vance continue to be integrated, contributing to revenue growth in Wealth Management and Investment Management, respectively. The firm also highlighted a strong Common Equity Tier 1 capital ratio of 16.6% under the standardized approach, indicating a solid capital position.

    Aug 2, 2021
  17. 2021-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2021

    Morgan Stanley reported a strong first quarter of 2021, with net revenues soaring by 61% to $15.7 billion and net income increasing by 143% to $4.1 billion, or $2.19 per diluted share. This robust performance was driven by significant contributions across all three business segments: Institutional Securities, Wealth Management, and Investment Management. The acquisitions of E*TRADE and Eaton Vance were successfully integrated and positively impacted results, particularly in Wealth Management and Investment Management, respectively. The firm's ROTCE (Return on Tangible Common Equity) reached 21.1%, highlighting improved profitability. Despite a notable $644 million loss related to a single client credit event in the Institutional Securities segment, the overall financial health and operational performance remained strong, supported by a solid Common Equity Tier 1 capital ratio of 16.7%. Management also authorized a $10 billion share repurchase program for 2021, signaling confidence in future performance and commitment to shareholder returns.

    May 3, 2021
  18. 2020-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2020

    Morgan Stanley's third quarter of 2020 report shows strong performance, with net revenues increasing by 16% to $11.7 billion and net income applicable to Morgan Stanley rising by 25% to $2.7 billion compared to the prior year quarter. This growth was driven by robust performance across all business segments, particularly Institutional Securities, which benefited from higher sales and trading activities and equity underwriting. Wealth Management demonstrated resilience with strong fee-based flows and increased loan and deposit balances, while Investment Management saw significant revenue growth fueled by higher assets under management. The firm also highlighted two significant strategic transactions: the completion of the E*TRADE acquisition on October 2, 2020, and the agreement to acquire Eaton Vance Corp. announced on October 8, 2020. These acquisitions are expected to bolster Morgan Stanley's Wealth Management and Investment Management franchises, respectively. The company's capital position remains strong, with a Common Equity Tier 1 capital ratio of 17.4% under the standardized approach, well above regulatory requirements.

    Nov 3, 2020
  19. 2020-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2020

    Morgan Stanley reported strong financial results for the second quarter of 2020, driven by a significant surge in its Institutional Securities segment. Net revenues reached $13.41 billion, a 31% increase year-over-year, with net income attributable to Morgan Stanley growing by 45% to $3.20 billion. This performance was largely fueled by robust client engagement in sales and trading, which saw a 68% increase in net revenues. The Wealth Management segment demonstrated resilience, delivering $1.14 billion in income before taxes with a 24% pre-tax margin, despite a challenging interest rate environment. The Investment Management segment also saw revenue growth of 6%, driven by higher average assets under management. The Firm maintained strong capital and liquidity positions, with a Common Equity Tier 1 capital ratio of 16.1% and a Liquidity Coverage Ratio of 147%. The firm also provided an update on its planned acquisition of E*TRADE, expecting to close in Q4 2020, subject to regulatory approvals.

    Aug 4, 2020
  20. 2020-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2020

    Morgan Stanley reported a decrease in net revenues and net income for the first quarter of 2020 compared to the prior year quarter, primarily due to the significant economic impacts of the COVID-19 pandemic in March. Net revenues were $9.5 billion, down from $10.3 billion year-over-year, while net income applicable to Morgan Stanley was $1.7 billion, or $1.01 per diluted share, down from $2.4 billion, or $1.39 per diluted share. The firm experienced mark-to-market losses and increased provisions for credit losses across its business segments, particularly in Institutional Securities, which saw a 40% decline in income before taxes. While trading revenues in Institutional Securities benefited from increased volatility, this was offset by losses on loans and lending commitments. Wealth Management revenues also declined, impacted by investment losses related to deferred compensation plans. Despite these challenges, Morgan Stanley maintained strong capital and liquidity positions, with total liquidity resources increasing significantly. Key developments during the quarter included the planned acquisition of E*TRADE, announced in February 2020, which is expected to close in the fourth quarter of 2020. The firm also voluntarily suspended its share repurchase program in March 2020, in line with industry actions, to preserve capital. Management noted that the ongoing pandemic and economic crisis make it uncertain whether the previously stated ROTCE Target will be met within the originally stated timeframe.

    May 5, 2020
  21. 2019-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2019

    Morgan Stanley reported solid financial results for the third quarter of 2019. Net revenues increased slightly year-over-year, driven by strong performance in Fixed Income sales and trading, and significant growth in the Investment Management segment. While the Institutional Securities segment saw a slight decline in net revenues due to lower equity sales and trading, the overall revenue picture remains positive. Net income applicable to Morgan Stanley and diluted earnings per share both showed modest increases compared to the prior year quarter. The firm maintained strong capital ratios and liquidity positions, well above regulatory requirements. Wealth Management continued to be a stable contributor, with fee-based client assets showing growth. The firm also announced a common stock dividend and continued its share repurchase program, demonstrating a commitment to returning capital to shareholders. Overall, the report indicates a stable financial position with growth in key areas, despite some headwinds in certain trading segments.

    Nov 5, 2019
  22. 2019-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2019

    Morgan Stanley's 10-Q filing for the period ending June 29, 2019, indicates a slight decrease in net revenues and net income compared to the prior year's second quarter and the first half of the year. This decline is primarily attributed to weaker performance in the Institutional Securities segment, specifically in sales and trading, and investment banking, influenced by macroeconomic uncertainties. Conversely, the Wealth Management and Investment Management segments demonstrated resilience, with net revenues increasing, driven by factors like higher transactional revenues in Wealth Management and investment gains in Investment Management. The firm maintained strong capital ratios, exceeding regulatory requirements. During the quarter, Morgan Stanley repurchased approximately $1.2 billion of its common stock as part of its ongoing share repurchase program. The company also announced an increase in its quarterly common stock dividend to $0.35 per share, reflecting confidence in its financial position and capital management strategy. Investors should note the ongoing investments in technology, which are impacting non-compensation expenses, and the company's preparation for evolving regulatory changes, such as the adoption of CECL.

    Aug 5, 2019
  23. 2019-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2019

    Morgan Stanley's first-quarter 2019 results (quarter ended March 31, 2019) show a firm with resilient but lower earnings. Net revenues were $10,286 million, down about 7% from $11,077 million a year earlier, and net income applicable to Morgan Stanley was $2,429 million, or $1.39 per diluted share, versus $1.45 in 1Q 2018. The decline was driven mainly by Institutional Securities, where net revenues fell 15% to $5,196 million on weaker sales and trading (especially equities) and lower investment banking fees. Wealth Management was flat at $4,389 million, while Investment Management grew 12% to $804 million on higher investment gains. Expenses fell 4% to $7,331 million, helped by lower compensation, and the expense efficiency ratio was 71.3% versus 69.1% a year earlier. The current quarter also benefited from roughly $101 million of intermittent discrete tax benefits; excluding these, adjusted EPS was $1.33. Capital and liquidity remained strong. The Common Equity Tier 1 ratio was 16.7% (Standardized Approach), against a 10.0% requirement, and the SLR was 6.5%. Morgan Stanley repurchased about $1.2 billion of common stock and paid a $0.30 quarterly dividend, and it declared another $0.30 dividend payable May 15, 2019. Book value per common share rose to $42.83 and tangible book value per share to $37.62. Total assets grew to $876 billion, and the Global Liquidity Reserve stood at $233 billion. Deposits fell about 4% to $179.7 billion, mainly from lower brokerage sweep balances, while borrowings were roughly flat at $190.7 billion. The filing also flags several risks and developments. Morgan Stanley faces litigation tied to residential mortgage and credit crisis matters, with some potential losses in the hundreds of millions of dollars, and it agreed to settle the California Attorney General case. It is also a defendant in new antitrust class actions regarding GSE bonds, and it is preparing for U.K. Brexit uncertainty and the LIBOR transition. Management reaffirmed its ROE target of 10% to 13% and ROTCE target of 11.5% to 14.5%.

    May 3, 2019
  24. 2018-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2018

    Morgan Stanley reported a strong third quarter of 2018, with net revenues of $9,872 million (up from $9,197 million a year earlier) and net income applicable to Morgan Stanley of $2,112 million, or $1.17 per diluted share, versus $0.93 in 3Q 2017. For the nine months, net revenues rose to $31,559 million and diluted EPS reached $3.92, compared with $2.79 in the prior-year period. Growth was broad-based: Institutional Securities revenues rose 13% in the quarter on higher sales and trading and investment banking, Wealth Management revenues grew 4% on asset management growth, and Investment Management revenues declined 3% on lower investment gains. The expense efficiency ratio improved to 71.1% from 73.0%, and ROTCE was 13.2% for the quarter, within the firm's 11.5%-14.5% medium-term target range. Capital and liquidity remained strong. The Common Equity Tier 1 ratio was 16.7% under the Standardized Approach, well above the 8.6% required level, and the SLR was 6.4%. Common share repurchases totaled $3.68 billion in the nine months under a 2018 Capital Plan allowing up to $4.7 billion of buybacks through June 2019, and the quarterly dividend was raised to $0.30 per share. Total assets were $865.5 billion, and deposits grew to $175.2 billion, driven by time deposits. Key risks flagged in the filing include several legacy residential mortgage and credit crisis-related lawsuits, with potential losses up to roughly $240 million to $277 million in individual cases, as well as exposure to proposed regulatory changes such as the SLR recalibration, SA-CCR, and the transition away from LIBOR. Management also noted that the lower effective tax rate reflects the Tax Act and intermittent discrete tax benefits.

    Nov 5, 2018
  25. 2018-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2018

    Morgan Stanley's 2Q 2018 results were strong. Net revenues rose 12% to $10,610 million and net income applicable to Morgan Stanley reached $2,437 million, or $1.30 per diluted share, versus $1.87 billion... more precisely, $1,757 million or $0.87 per diluted share a year earlier. Six-month net revenues were $21,687 million, up 13%, and six-month EPS was $2.75. Growth was led by Institutional Securities, where net revenues rose 20% on higher sales and trading and investment banking revenues. Wealth Management revenues grew 4% on asset management growth, and Investment Management revenues grew 4%. Results were helped by an intermittent net discrete tax benefit of $88 million. Excluding that benefit, adjusted EPS was $1.25 for the quarter and $2.70 for the half year, with the adjusted quarterly ROE at 12.5%. Expenses rose faster than the revenue growth rate in some areas. Compensation rose 9% and non-compensation expenses rose 10%, mainly due to incentive pay tied to higher revenues and the gross presentation of certain costs under the new revenue standard. The expense efficiency ratio improved to 70.7% from 72.2%, and ROTCE reached 14.9% versus 10.4%. The firm's capital position remains strong, with a Common Equity Tier 1 ratio of 15.8% under the fully phased-in Standardized Approach and a supplementary leverage ratio of 6.4%. Management repurchased $2.5 billion of stock in the first half and received a conditional non-objection to its 2018 Capital Plan, which allows up to $4.7 billion of repurchases from July 2018 through June 2019. The quarterly dividend will increase to $0.30 from $0.25. The balance sheet grew to $875.9 billion from $851.7 billion at year-end, driven mainly by securities borrowed and loans. Deposits rose to $172.8 billion, and the Global Liquidity Reserve reached $226.3 billion. Key risks include the pending China Development Industrial Bank and Mortgage-related litigation, with potential losses disclosed in the range of roughly $126 million to $277 million for individual matters, the ongoing transition away from LIBOR, and the forthcoming Volcker and capital rule changes.

    Aug 3, 2018
  26. 2018-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2018

    Morgan Stanley's first-quarter 2018 10-Q shows a strong quarter. Net revenues rose 14% to $11,077 million from $9,745 million a year earlier, and net income applicable to Morgan Stanley was $2,668 million, or $1.45 per diluted share, versus $1.00 in 1Q 2017. Growth was broad-based: Institutional Securities revenues rose 18% on higher sales and trading and investment banking revenues, Wealth Management revenues rose 8% led by asset management fees, and Investment Management revenues rose 18%. Non-interest expenses increased 10% to $7,657 million, driven by higher discretionary incentive compensation and volume-related costs, partly offset by a reversal of U.K. VAT provisions. Part of the revenue and expense growth reflects the gross presentation required by the new Revenue from Contracts with Customers standard, which the firm adopted on January 1, 2018. Profitability and capital improved. Return on average common equity was 14.9% and return on average tangible common equity was 17.2%, both well above the prior-year levels of 10.7% and 12.3%. The firm set a medium-term ROE target of 10% to 13%. Book value per common share rose to $39.19 and tangible book value per share to $34.04. The Common Equity Tier 1 ratio on a fully phased-in Standardized basis was 15.5%, down from 16.5% at year-end, reflecting higher risk-weighted assets, mainly corporate lending commitments. The firm repurchased $1.25 billion of common stock in the quarter and declared a $0.25 quarterly dividend. Its 2018 effective tax rate guidance is 22% to 25%, reflecting the Tax Cuts and Jobs Act. Key risks flagged in the filing include a rise in total lending commitments of about $25 billion, a fall in the Liquidity Coverage Ratio to 121% from 128%, and several legacy residential mortgage litigation matters with potential losses ranging from roughly $126 million to $277 million each. The filing also notes the proposed Federal Reserve changes to stress capital buffers and the enhanced supplementary leverage ratio, and the transition away from LIBOR.

    May 4, 2018
  27. 2017-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2017

    Morgan Stanley's third-quarter 2017 results (quarter ended September 30, 2017) were strong, with net revenues of $9,197 million, up from $8,909 million a year earlier, and net income applicable to Morgan Stanley of $1,781 million, or $0.93 per diluted share, versus $0.81 in 3Q 2016. For the nine months, net revenues rose to $28,445 million and diluted EPS reached $2.79, compared with $2.11 a year earlier. Including a $83 million discrete tax benefit-related adjustment, non-GAAP diluted EPS excluding the discrete tax provision was $0.88 for the quarter. Annualized ROE was 9.6% for the quarter and 9.8% year-to-date, well above the prior-year levels, and the firm is working toward its 9% to 11% ROE target by 2017. Growth was broad-based across the business segments. Institutional Securities revenues fell 4% year over year in the quarter on weaker fixed income sales and trading, though investment banking rose 15% and the nine-month segment result was up 11%. Wealth Management revenues grew 9% on higher asset management fees and net interest income, and Investment Management revenues rose 22% on higher carried interest and investment gains. Expenses rose modestly, with a U.K. VAT provision of $86 million and higher litigation costs in the nine-month period. The balance sheet and capital position remained solid. The Common Equity Tier 1 ratio was 16.9% on a transitional Standardized basis, the Tier 1 leverage ratio was 8.4%, and book value per common share rose to $38.87. Total assets grew to $853.7 billion. The firm repurchased $1.25 billion of common stock in the quarter under a $5.0 billion capital plan for July 2017 to June 2018, and it raised the quarterly dividend to $0.25 per share from $0.20. Investors should also note ongoing legacy residential mortgage litigation with significant potential exposure and the pending Dutch tax challenge.

    Nov 3, 2017
  28. 2017-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2017

    Morgan Stanley's second-quarter 2017 results (quarter ended June 30, 2017) showed solid top-line growth and improved profitability versus the prior-year period. Net revenues were $9,503 million in 2Q 2017, up from $8,909 million, and net income applicable to Morgan Stanley was $1,757 million, or $0.87 per diluted share, versus $1,582 million or $0.75 a year earlier. For the first half, net revenues rose to $19,248 million (from $16,701 million) and EPS reached $1.87 (from $1.30). Growth was led by Institutional Securities, where investment banking revenues rose 28% in the quarter on higher underwriting activity, and by Wealth Management, where net revenues increased 9% on asset management fee growth and higher net interest income. Investment Management also improved, with net revenues up 14% in the quarter. Expenses grew faster than the quarter's revenue growth rate in some lines. Compensation and benefits rose 6% in the quarter and 13% for the half-year, driven mainly by incentive compensation tied to higher revenues. Non-compensation expenses rose 8% in the quarter, including a $86 million provision related to a U.K. VAT matter and higher litigation costs in the year-to-date period. The expense efficiency ratio was 72.2% in the quarter, compared with 72.1% a year earlier. Annualized return on average common equity was 9.1% for the quarter and 9.9% year-to-date, against a stated ROE target of 9% to 11% to be achieved by 2017. Capital and balance sheet metrics remained strong. The Common Equity Tier 1 ratio was 16.6% (transitional, advanced) at June 30, 2017, and the Tier 1 leverage ratio was 8.5%. Total assets increased to $841.0 billion, driven mainly by trading inventory growth in Institutional Securities. Following Federal Reserve non-objection to the 2017 Capital Plan, the firm may repurchase up to $5.0 billion of common stock from July 2017 to June 2018, and the quarterly common dividend will rise to $0.25 per share from $0.20. Deposits declined to $144.9 billion, while long-term borrowings increased to $184.1 billion.

    Aug 3, 2017
  29. 2017-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2017

    Morgan Stanley reported a strong first quarter of 2017 (quarter ended March 31, 2017). Net revenues rose 25% to $9,745 million from $7,792 million a year earlier, and net income applicable to Morgan Stanley nearly doubled to $1,930 million, or $1.00 per diluted share, versus $1,134 million ($0.55) in the prior-year quarter. The results were helped by a $112 million recurring-type discrete tax benefit tied to the new employee share-based payment accounting update. Excluding the discrete tax items, the firm reported non-GAAP EPS of $1.01, with annualized ROE of 10.7% against 6.2% a year earlier, and it remains on track toward its 9%-11% ROE target for 2017. Growth was led by Institutional Securities, where net revenues rose 39% to $5,152 million on higher trading and investment banking revenues, while Wealth Management grew 11% to $4,058 million on higher net interest income and fee revenues. Investment Management revenue rose 28% to $609 million, aided by investment gains. Non-interest expenses increased 15% to $6,937 million, mainly from compensation, which rose 21% on higher incentive pay, and non-compensation costs, which rose 4% on litigation and volume-driven expenses. The expense efficiency ratio improved to 71.2% from 77.7%. The balance sheet and capital position strengthened. Total assets grew to $832.4 billion from $814.9 billion, mainly from trading inventory. The Common Equity Tier 1 ratio (Advanced, transitional) rose to 17.4% from 16.9%, and the Tier 1 leverage ratio reached 8.5%. Book value per share increased to $37.48 and tangible book value per share to $32.49. The firm repurchased about $750 million of common stock, declared a $0.20 quarterly dividend, and issued $1 billion of Series K preferred stock. Long-term borrowings grew to $172.7 billion, and deposits declined to $152.1 billion. Management is also preparing for regulatory changes, including the 2017 CCAR submission, the July 2017 resolution plan, and the Department of Labor fiduciary rule, while it continues to assess the revenue recognition standard effective in 2018 and the impact of U.K. Article 50 activation. The main risks flagged in the filing include significant legal exposure from residential mortgage and credit-crisis litigation, with several claims where the firm estimates possible losses in the hundreds of millions of dollars, and continued sensitivity to market volatility and funding costs. The 10-Q was reviewed, not audited, by Deloitte & Touche LLP.

    May 4, 2017
  30. 2016-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2016

    Morgan Stanley's Q3 2016 Form 10-Q shows a strong quarter. Net revenues rose 15% year over year to $8,909 million, and net income applicable to Morgan Stanley reached $1,597 million, or $0.81 per diluted share, versus $0.48 a year earlier. The prior-year quarter was flattered by $435 million of debt valuation adjustment (DVA) gains, so excluding DVA the underlying improvement was $0.81 versus $0.34, or roughly 2.4x. Trading revenue of $2,609 million drove much of the gain, with Institutional Securities net revenues up 17% and Wealth Management up 7%. Investment Management benefited from positive carried interest after a prior-year reversal. Profitability and capital returns were also solid. The annualized return on average common equity was 8.7% for the quarter, versus 7.7% for the nine-month period, and the pre-tax margin reached 27%. Compensation expense rose 19% to $4,097 million on higher incentive pay and deferred compensation marks, while non-compensation expenses fell 15% on lower litigation costs. Morgan Stanley repurchased about $1.25 billion of stock in the quarter and $2.5 billion year to date, and the quarterly dividend was raised to $0.20 from $0.15, consistent with the 2016 capital plan. The Common Equity Tier 1 ratio improved to 16.8% on a transitional basis, and tangible book value per share rose to $32.13 from $30.26 at year-end 2015. Key risks remain. Energy-sector lending exposure was $13.0 billion, and the firm increased loan-loss allowances for energy counterparties during the nine months. Several legacy residential mortgage cases carry potential losses of up to hundreds of millions of dollars each, including a $527 million claim. Management also flagged the Federal Reserve's request for an additional capital plan by December 29, 2016, the U.K. Brexit referendum's uncertain effects, and pending regulatory proposals on TLAC, single-counterparty limits, and the Volcker Rule. Subsequent to quarter-end, long-term borrowings increased by about $2.2 billion net through October 31, 2016.

    Nov 2, 2016
  31. 2016-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2016

    Morgan Stanley's second-quarter 2016 results show a firm that is earning less than a year earlier, though it remains solidly profitable and well capitalized. Net revenues fell 9% to $8.9 billion for the quarter, and net income applicable to Morgan Stanley dropped to $1.58 billion, or $0.75 per diluted share, versus $0.85 a year earlier. The prior-year quarter also included $182 million of debt valuation adjustment (DVA) gains, so the underlying decline is somewhat smaller on a like-for-like basis. Institutional Securities revenue fell 11% on weaker underwriting and sales and trading, partly offset by M&A advisory strength, while Wealth Management was down only 2%, and Investment Management fell 22% on lower investment gains and carried interest. Expense discipline and capital return are the key offsets. Non-interest expenses declined 8% to $6.4 billion, driven by lower compensation tied to reduced revenue and lower litigation costs. The return on average common equity was 8.3% for the quarter and 7.2% for the six months, both well below the firm's 2017 target. Capital position is strong: the Common Equity Tier 1 ratio was 16.8% on a transitional advanced basis, and the Federal Reserve gave a conditional non-objection to a 2016 capital plan allowing up to $3.5 billion of share repurchases from July 2016 to June 2017 and a dividend increase to $0.20 per share. The Fed also asked for a resubmitted capital plan by December 2016, a caveat investors should note. The filing also flags several risk items. The energy sector loan book stands at $13.5 billion, with reserves increased for oil and gas exploration and production exposures. Legacy residential mortgage litigation remains significant, with several claims carrying potential losses in the hundreds of millions of dollars, and a proposed Italian claim of Euro 2.879 billion was received in July. The UK's June 2016 vote to leave the EU adds uncertainty for a firm with significant European operations. Total assets rose to $829 billion, and the firm's Global Liquidity Reserve stood at $207 billion.

    Aug 3, 2016
  32. 2016-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2016

    Morgan Stanley's first-quarter 2016 10-Q shows a quarter of sharply weaker revenue and profitability versus the prior year, though the balance sheet and capital position remained strong. Net revenues fell 21% to $7.79 billion from $9.91 billion, driven by a 32% drop in Institutional Securities (fixed income and commodities trading down 56%, underwriting down 43%) and a 29% decline in Investment Management, partly offset by a 4% decline in Wealth Management where net interest income rose 21%. Net income applicable to Morgan Stanley fell to $1.13 billion ($0.55 diluted EPS) from $2.39 billion ($1.18), though the prior-year figure included a $564 million discrete tax benefit. Annualized return on average common equity was 6.2%, versus 14.1% a year earlier, and the company's stated target is to reach a return on equity excluding DVA by 2017. Expenses declined more than revenue, with compensation and benefits down 19% to $3.68 billion on lower incentive pay and headcount (54,779 employees vs. 56,218 at year-end), and non-compensation costs down 6% largely from lower litigation expense. Pre-tax margin compressed to 22% from 29%. The effective tax rate rose to 33.3% from 13.6%, reflecting the absence of last year's one-time benefit. The balance sheet grew to $807.5 billion from $787.5 billion, and capital ratios improved modestly: the Common Equity Tier 1 ratio reached 15.6% (transitional, Advanced approach) versus 15.5% at year-end, and the Tier 1 leverage ratio was 8.2%. The company returned capital through $625 million of buybacks and a $0.15 quarterly dividend, and an early adoption of new accounting guidance moved debt valuation adjustment gains and losses into other comprehensive income, which flatters reported trading revenue relative to prior-year comparisons. Investors should weigh the weak trading and investment banking franchise against the stable wealth management and capital base.

    May 4, 2016
  33. 2015-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2015

    Morgan Stanley's Q3 2015 10-Q shows a quarter of weaker profitability, with net income applicable to Morgan Stanley of $1,018 million ($0.48 per diluted share) versus $1,693 million ($0.83) a year earlier. Net revenues fell 13% to $7,767 million, driven by lower Institutional Securities revenues (down 14%) and a 59% drop in Investment Management net revenues. Excluding a $435 million positive debt valuation adjustment (DVA), net revenues were $7,332 million, and the prior-year quarter also benefited from a $237 million discrete tax benefit. Non-interest expenses fell 6% to $6,293 million, mainly on lower compensation, though non-compensation expenses rose 15% on a CDS antitrust settlement reserve and other matters. For the nine months, net revenues rose 3% to $27,417 million and net income applicable to Morgan Stanley reached $5,219 million ($2.51 per diluted share), though this included a $564 million discrete tax benefit. The annualized return on average common equity was 5.6% for the quarter (3.9% excluding DVA), well below the company's stated 10% goal. The balance sheet grew to $834 billion, and the company repurchased about $625 million of stock in the quarter and $1.5 billion year to date under its $3.1 billion authorization, while the quarterly dividend rose to $0.15 from $0.10. Key risks flagged include ongoing residential mortgage litigation with several claims totaling hundreds of millions of dollars, a $240 million potential exposure in the CDIB credit default swap case, and S&P placing the parent's ratings on negative watch on November 2, 2015. The company's capital remained strong, with a 14.0% Common Equity Tier 1 ratio under the advanced approach transitional rules, and it closed the sale of its global oil merchanting unit on November 1, 2015.

    Nov 3, 2015
  34. 2015-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2015

    Morgan Stanley's second-quarter 2015 Form 10-Q shows a strong quarter. Net revenues rose 13% year over year to $9,743 million, and net income applicable to Morgan Stanley was $1,807 million, or $0.85 per diluted share, versus $1,899 million ($0.92) a year earlier. The prior-year quarter benefited from a $609 million discrete tax benefit, so excluding that item and debt valuation adjustment (DVA) gains, earnings improved meaningfully. Institutional Securities drove the growth, with trading revenues up strongly in equities and fixed income, while Wealth Management grew through asset management fees and net interest income. Non-interest expenses rose 5% to $7,016 million, led by compensation, which reflects higher revenues. The balance sheet expanded to $825.8 billion in total assets from $801.5 billion at year-end 2014, and capital strengthened. The Common Equity Tier 1 ratio rose to 14.0% under the Advanced Approach transitional rules from 12.6%, and the Company repurchased about $625 million of stock in the quarter under a $3.1 billion 2015 capital plan. The dividend was raised to $0.15 per share from $0.10. Management also reported a $1.5 billion Series J preferred issuance and a sale of its global oil merchanting unit to Castleton Commodities, which triggered a $59 million impairment. Investors should note several items: the effective tax rate was 32.8% in the quarter, with a 22.9% rate for the six months aided by a $564 million discrete benefit; the company faces significant legacy residential mortgage litigation with several claims in the hundreds of millions of dollars; and the Federal Reserve finalized a G-SIB surcharge of 3% that will phase in from 2016 to 2019. Institutional Securities non-compensation expenses also rose on legal and consulting costs. Overall, the filing points to improved profitability and a stronger capital position, with the main risks coming from litigation and regulatory capital requirements.

    Aug 4, 2015
  35. 2015-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2015

    Morgan Stanley's first quarter 2015 results demonstrated a strong performance, with net income applicable to Morgan Stanley increasing to $2.39 billion, a significant rise from $1.51 billion in the prior year period. This growth was driven by a robust increase in net revenues to $9.91 billion, up from $9.00 billion year-over-year. The Institutional Securities segment was a key driver of this improvement, with net revenues growing to $5.46 billion, largely due to a substantial increase in equity and fixed income trading revenues. Wealth Management also showed positive momentum, with net revenues increasing to $3.83 billion, benefiting from higher fee-based assets and increased net interest income. However, Investment Management experienced a decline in net revenues to $669 million, primarily due to lower investment gains and the deconsolidation of certain real estate fund entities. Overall, the company's diluted earnings per share improved significantly to $1.18 from $0.74 in the prior year, reflecting both improved operational performance and a favorable tax benefit. The company's capital position remained strong, with Common Equity Tier 1 capital ratio at 13.1% under U.S. Basel III transitional rules, well above regulatory minimums. Morgan Stanley also announced an increase in its quarterly common stock dividend and a new share repurchase program, signaling confidence in its financial health and commitment to shareholder returns.

    May 4, 2015
  36. 2014-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2014

    Morgan Stanley's third-quarter 2014 Form 10-Q (filed November 4, 2014) shows a strong quarter. Net revenues were $8,907 million, up 12% from $7,956 million a year earlier, and net income applicable to Morgan Stanley rose to $1,693 million from $906 million. Diluted EPS was $0.83 versus $0.45. Results were helped by a $215 million positive swing from debt valuation adjustment (DVA); excluding DVA, net revenues were $8,692 million and diluted EPS from continuing operations was $0.76. Institutional Securities drove much of the improvement, with pre-tax income rising to $1,226 million from $397 million, while Wealth Management grew net revenues 9% to $3,785 million and Investment Management fell on lower investment gains. The balance sheet shrank modestly, with total assets down to $814.5 billion from $832.7 billion, mainly from lower trading assets. Capital strengthened: total equity rose to $74.0 billion, preferred stock increased to $6.0 billion after several issuances in 2014, and the Common Equity Tier 1 ratio under the transitional Advanced Approach was 14.4%. The company also repurchased about $629 million of common stock year-to-date and raised its quarterly dividend to $0.10 per share. Investors should note several items. A discrete tax benefit of $237 million in the quarter and $609 million year-to-date lowered the effective tax rate to 20.9% for the quarter (31.5% excluding discrete items). Subsequent to quarter-end, the company disclosed an expected discrete tax benefit of about $1.3 billion from restructuring the Wealth Management JV holding company. Ongoing residential mortgage-related litigation and regulatory matters remain significant, including a new Virginia Attorney General lawsuit and an Illinois demand for approximately $88 million.

    Nov 4, 2014
  37. 2014-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2014

    Morgan Stanley's second-quarter 2014 results, as reported in this 10-Q filed August 5, 2014, show a strong rebound in profitability. Net income applicable to Morgan Stanley was $1,899 million for the quarter, versus $980 million a year earlier, on net revenues of $8,608 million (up from $8,515 million). Diluted EPS was $0.92 versus $0.41, though the quarter benefited from a discrete $609 million tax benefit that lowered the effective tax rate to 0.8%; excluding it, the rate would have been 32.3%. Year-to-date diluted EPS was $1.66. Management reports a consolidated return on average common equity of 11.3% for the quarter, with 10.7% excluding DVA, and points to a 10%+ return-on-equity goal. The balance sheet was broadly stable, with total assets of $826.6 billion (down from $832.7 billion at year-end 2013) and total equity of $72.2 billion. Preferred stock rose to $5.0 billion after several 2014 issuances. Management reports a U.S. Basel III Common Equity Tier 1 ratio of 13.9% on a transitional basis, with a pro forma fully phased-in Advanced Approach estimate of about 12.3%. Liquidity remained strong, with a Global Liquidity Reserve of $192 billion at June 30, 2014. Key risks include ongoing residential mortgage litigation and regulatory matters. Subsequent to the earnings release, Morgan Stanley increased legal accruals by $53 million for agreements in principle to settle mortgage-related matters, reducing diluted EPS by $0.02. The company also agreed in principle to settle three class actions and received SEC approval of a $275 million settlement related to subprime RMBS, and the California Attorney General has raised allegations that could lead to significant penalties.

    Aug 5, 2014
  38. 2014-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2014

    Morgan Stanley's first quarter 2014 results demonstrate a solid increase in profitability driven by growth across its key business segments. Net revenues rose to $8.9 billion, with income applicable to Morgan Stanley shareholders reaching $1.5 billion, a significant improvement from the prior year quarter. The Institutional Securities segment saw robust growth in investment banking and sales & trading activities, benefiting from positive valuation adjustments (DVA). Wealth Management reported higher net revenues driven by increased fee-based client assets and net interest income, while Investment Management also showed improved profitability due to higher net investment gains. The company maintained strong capital ratios, exceeding regulatory requirements under both the existing U.S. Basel I framework and the newly implemented U.S. Basel III transitional rules.

    May 6, 2014
  39. 2013-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2013

    Morgan Stanley's Q3 2013 10-Q shows a quarter with a clear rebound in profitability. Net income applicable to Morgan Stanley was $906 million on net revenues of $7,932 million, compared with a net loss of $1,023 million on $5,280 million of revenues in the prior-year quarter. Results were helped by a much smaller negative swing from Debt Valuation Adjustment (DVA), which was a $171 million revenue drag versus $2,262 million a year earlier. Excluding DVA, net revenues were $8,103 million and diluted EPS from continuing operations was $0.50, versus $0.28 in the prior-year quarter. Trading revenues rose sharply, Wealth Management and Investment Management both grew, and non-interest expenses fell 3% to $6,593 million. For the nine months, net income applicable to Morgan Stanley was $2,848 million and diluted EPS was $1.34. Those figures absorbed a roughly $151 million negative adjustment tied to the June 2013 purchase of the remaining 35% of the Wealth Management JV from Citi for $4.725 billion. That deal raised Morgan Stanley's ownership to 100%, retired Citi's preferred interests, and moved about $21 billion of customer deposits onto the firm's balance sheet, with roughly $35 billion more to transfer through June 2015. Deposits rose to $104.8 billion from $83.3 billion at year-end 2012. Balance sheet and capital remained solid. Total assets reached $832.2 billion, up from $781.0 billion, and total equity was $68.2 billion. The Basel I Tier 1 capital ratio was 15.3% and the Tier 1 common ratio 12.6%, both well above requirements. The Tier 1 leverage ratio was 7.3%. Management estimated a pro forma Basel III Common Equity Tier 1 ratio of about 10.8%. Long-term borrowings declined to $157.8 billion from $169.6 billion. The filing also notes split credit ratings, with Moody's placing the firm's long-term ratings on review for downgrade in August 2013, and it lists several large residential mortgage-related lawsuits.

    Nov 4, 2013
  40. 2013-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2013

    Morgan Stanley's Q2 2013 10-Q shows net income applicable to Morgan Stanley of $980 million on net revenues of $8,503 million for the quarter ended June 30, 2013, up from $591 million on $6,942 million a year earlier. Diluted EPS was $0.41 (or $0.43 from continuing operations), compared with $0.29 a year ago. The quarter absorbed a roughly $151 million (about $0.08 per diluted share) negative adjustment tied to the June 28, 2013 purchase of the remaining 35% of the Wealth Management JV from Citi for $4.725 billion, which brings the firm to 100% ownership. Results also include a $175 million positive DVA impact; excluding DVA, net revenues were $8,328 million and diluted EPS from continuing operations were $0.37 (non-GAAP). Balance sheet and capital metrics were stable. Total assets rose to $802.7 billion from $781.0 billion at year-end 2012, driven mainly by securities borrowed and fed funds/resale agreements. The Basel I Tier 1 common ratio was 11.8% and the Tier 1 leverage ratio 7.1%. Management estimates a pro forma Basel III Common Equity Tier 1 ratio of about 9.9% under the U.S. Basel III final rule issued in July 2013, which takes effect January 1, 2014. Non-interest expenses rose 12% to $6,728 million, driven by compensation (up 13%) and litigation accruals, which increased by about $199 million in the quarter. The company also received no objection from the Federal Reserve to repurchase up to $500 million of stock through March 2014. Risks flagged include a rise in interest rates that produced $342 million of after-tax unrealized losses on available-for-sale securities in the quarter, ongoing residential mortgage and credit-crisis litigation (several large MBS repurchase and securities suits), split credit ratings from Moody's and S&P, and the expected transfer of about $57 billion in deposits away from the Citi sweep over 24 months. Overall, the filing shows improved year-over-year profitability, with Institutional Securities and Wealth Management both contributing, offset by higher expenses and mark-to-market and litigation headwinds.

    Aug 2, 2013
  41. 2013-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2013

    Morgan Stanley reported net income applicable to Morgan Stanley of $962 million for the quarter ended March 31, 2013, on net revenues of $8,158 million, a sharp turnaround from a net loss of $94 million on $6,924 million in the year-ago quarter. Diluted EPS was $0.48 (continuing operations $0.49) versus $(0.06) a year earlier. The swing is heavily influenced by the debt valuation adjustment (DVA): DVA produced a $317 million revenue drag this quarter compared with a $1,978 million drag in Q1 2012. Excluding DVA, net revenues were $8,475 million (down from $8,902 million) and diluted EPS from continuing operations was $0.59 (down from $0.71), so underlying earnings declined year over year. A discrete net tax benefit of $142 million (about $0.07 per diluted share) also lifted results; excluding it, the effective tax rate would have been 30.0%. By segment, Institutional Securities pre-tax income rose to $798 million from a $329 million loss, driven by lower compensation (down 14%) and higher underwriting revenue, though equity sales and trading (ex-DVA) fell 19%. Global Wealth Management pre-tax income increased to $597 million, supported by asset management fees up 8% and client assets reaching $1.79 trillion, with fee-based flows of $15.3 billion. Asset Management pre-tax income rose to $187 million. Balance sheet and capital remained solid. Total assets grew to $801.4 billion, and the Tier 1 common ratio was 11.5% under the new Basel 2.5 framework, down from 14.6% at year-end because risk-weighted assets rose to $403 billion from $307 billion (the market risk capital change). The Tier 1 leverage ratio was 7.0%. Management estimated a pro forma Basel III Tier 1 common ratio of about 9.7%. The company also has a pending commitment to buy the remaining 35% of the Wealth Management JV for $4.725 billion by June 2015, subject to regulatory approval.

    May 7, 2013
  42. 2012-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2012

    Morgan Stanley's third quarter 2012 report shows a net loss of $1.023 billion applicable to Morgan Stanley, a significant deterioration from the $2.199 billion net income in the prior year period. This loss was driven by a substantial decline in net revenues, primarily due to negative revenue of $2.262 billion related to the tightening of the company's debt-related credit spreads on fair-valued borrowings, a factor commonly referred to as Debt Valuation Adjustment (DVA). Excluding this DVA impact, net revenues would have been higher, and the company would have reported a profit. The Institutional Securities segment experienced a significant loss before taxes, largely due to these DVA impacts and increased litigation expenses. Despite the overall net loss, the Global Wealth Management Group showed resilience with stable net revenues and a slight increase in assets under management, demonstrating the stability of this segment. The company also made strategic progress, including increasing its stake in the Wealth Management Joint Venture with Citi. Management highlights that excluding the DVA impact, the company's performance would have been considerably stronger, indicating a focus on the underlying business operations.

    Nov 6, 2012
  43. 2012-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2012

    Morgan Stanley's (MS) second-quarter 2012 report shows a net income of $591 million, or $0.29 per diluted share, on net revenues of $6.95 billion. This represents a significant decrease compared to the prior year's second quarter, which saw a net income of $1.19 billion on net revenues of $9.21 billion. The decline in net revenues was primarily driven by a substantial drop in investment banking and principal transactions (trading) revenues, exacerbated by a challenging market environment and reduced client activity. While Global Wealth Management Group showed resilience with slightly improved income from continuing operations and stable net revenues, the Institutional Securities segment experienced a significant revenue decline, particularly in fixed income and commodities trading. Despite the revenue headwinds, Morgan Stanley demonstrated strong expense management, with total non-interest expenses decreasing by 17% year-over-year, largely due to lower compensation expenses. The company also reported solid capital ratios, well above regulatory requirements, and maintained a strong liquidity position. The report highlights ongoing efforts to divest non-core assets, such as the sale of Quilter, and manage risk effectively, particularly in light of regulatory changes and market volatility.

    Aug 6, 2012
  44. 2012-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2012

    Morgan Stanley's first quarter 2012 results show a mixed financial performance, with a net loss attributable to common shareholders of $94 million ($0.06 per diluted share) on net revenues of $6.935 billion. This contrasts with a profitable prior year quarter, largely due to a significant negative impact from tightening "Debt-Related Credit Spreads on Borrowings" which negatively affected net revenues by $1.978 billion. Excluding this impact, net revenues would have increased to $8.913 billion, and diluted EPS from continuing operations would have been $0.71. The Institutional Securities segment reported a pre-tax loss of $312 million, heavily influenced by the credit spread impact, though excluding this impact, sales and trading revenues improved significantly. The Global Wealth Management Group showed resilience with largely stable net revenues and improved pre-tax income, driven by higher asset management fees and net interest income. Asset Management segment's net revenues declined, primarily due to lower gains on principal investments, but pre-tax income remained stable.

    May 7, 2012
  45. 2011-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2011

    Morgan Stanley's (MS) Q3 2011 10-Q filing reveals a significant rebound in profitability, with net income applicable to Morgan Stanley shareholders reaching $2.199 billion, a substantial increase from $131 million in the same period last year. This improvement was driven by a strong performance in the Institutional Securities segment, particularly in sales and trading, which benefited from increased client activity and significant positive revenue adjustments related to the company's own credit spreads on its borrowings. Total revenues also saw a healthy increase, primarily due to higher trading volumes and advisory fees. Despite a challenging macroeconomic environment characterized by European sovereign debt concerns and slowing global growth, Morgan Stanley demonstrated resilience. The Global Wealth Management Group showed steady revenue growth, while the Asset Management segment experienced a decline in revenues, largely due to lower performance fees and investment losses. The company maintained robust capital ratios and liquidity throughout the period, exceeding regulatory requirements.

    Nov 7, 2011
  46. 2011-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2011

    Morgan Stanley's second quarter 2011 report shows a net income of $1.193 billion applicable to Morgan Stanley, a decrease from $1.960 billion in the same period last year. Net revenues increased to $9.282 billion from $7.963 billion, driven by strong performance in Investment Banking and Global Wealth Management. However, a significant factor impacting the results was a one-time, non-cash negative adjustment of approximately $1.7 billion related to the conversion of MUFG's Series B Preferred Stock into common stock, which significantly impacted earnings per share. The Institutional Securities segment saw a decrease in income from continuing operations before taxes, largely due to higher compensation and non-compensation expenses. Conversely, Global Wealth Management Group and Asset Management showed improvements in income from continuing operations before taxes. The company also reported gains related to credit spread widening on its borrowings, which provided a temporary boost to revenue but masked some underlying operational trends. Liquidity remains strong, with a Global Liquidity Reserve of $182 billion, and capital ratios are well above regulatory requirements.

    Aug 8, 2011
  47. 2011-Q1

    MORGAN STANLEY Quarterly Report for Q1 Ended Mar 31, 2011

    Morgan Stanley's Q1 2011 report shows a significant year-over-year decline in net income, primarily due to a substantial pre-tax loss of $655 million from its Japanese securities joint venture (MUMSS) and negative revenue impacts from widening credit spreads on the company's borrowings. While net revenues decreased to $7.635 billion from $9.072 billion in Q1 2010, the firm's Institutional Securities segment experienced a sharp drop in income from continuing operations before income taxes, largely influenced by lower fixed income and commodities trading revenues and the MUMSS loss. Conversely, the Global Wealth Management Group demonstrated resilience with an increase in income from continuing operations before income taxes, driven by higher client activity and fee-based revenues. Despite these headwinds, the company maintained a strong capital position, with its Tier 1 capital ratio remaining robust.

    May 9, 2011
  48. 2010-Q3

    MORGAN STANLEY Quarterly Report for Q3 Ended Sep 30, 2010

    Morgan Stanley's Q3 2010 filing indicates a mixed financial performance. While total assets grew to $841 billion, driven by increased financial instruments and securities financing activities, net revenues declined compared to the prior year's third quarter, primarily due to weaker performance in the Institutional Securities segment. This decline was driven by lower equity and fixed income sales and trading revenues, as well as reduced investment banking revenues, particularly in equity underwriting. However, the Global Wealth Management Group saw a slight increase in net revenues, supported by higher fee-based revenues and the ongoing integration of Morgan Stanley Smith Barney (MSSB). The company also reported a net income applicable to Morgan Stanley of $131 million for the quarter, a decrease from $757 million in the same period last year, impacted by lower revenues and a significant tax benefit related to repatriated foreign earnings. Diluted EPS turned negative at $(0.07), down from $0.38 in the prior year's quarter, reflecting the challenging revenue environment. Despite the quarterly revenue dip, the year-to-date performance showed substantial improvement, with net income applicable to Morgan Stanley reaching $3.87 billion for the first nine months of 2010, compared to $729 million in the prior year. This year-to-date growth was boosted by the inclusion of MSSB's results, improved trading performance in certain areas, and significant gains from discontinued operations, including the sale of Retail Asset Management and a legal settlement with Discover Financial Services. The company's capital position remained strong, with Tier 1 capital ratios well above regulatory requirements, although the company is also navigating evolving regulatory landscapes like Basel III.

    Nov 8, 2010
  49. 2010-Q2

    MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2010

    Morgan Stanley's second quarter of 2010 demonstrated a significant rebound from the prior year, with net income applicable to Morgan Stanley reaching $1.96 billion, a substantial increase from $149 million in Q2 2009. This improvement was driven by a strong recovery in net revenues, which grew to $7.95 billion from $5.20 billion year-over-year, bolstered by gains from favorable credit spread movements on certain debt instruments and a notable recovery in trading activities across both equity and fixed income markets. The Institutional Securities segment was a primary driver of this growth, showing a return to profitability. The Global Wealth Management Group also saw significant revenue growth, largely due to the inclusion of Morgan Stanley Smith Barney (MSSB), acquired in May 2009. The company also recorded a substantial after-tax gain of $514 million from the sale of its Retail Asset Management business to Invesco, which contributed positively to the overall results. Despite increased non-interest expenses, partly due to the MSSB consolidation and higher operational costs, Morgan Stanley's robust revenue growth led to a significant improvement in profitability and earnings per share.

    Aug 9, 2010
  50. 2010-Q1-A

    MORGAN STANLEY Quarterly Report (Amendment) for Q1 Ended Mar 31, 2010

    This 10-Q Amendment from Morgan Stanley, filed on May 10, 2010, for the period ending March 30, 2010, primarily focuses on the company's internal controls and procedures. Management, including the CEO and CFO, has evaluated the effectiveness of these controls and concluded they are effective. Importantly, there were no changes to the company's internal control over financial reporting during the quarter that materially impacted or are likely to impact its effectiveness.

    May 11, 2010