Summary
Morgan Stanley's first quarter 2013 results show a significant rebound in profitability compared to the same period in 2012. Net revenues increased to $8.16 billion from $6.92 billion year-over-year, driven primarily by a strong performance in the Institutional Securities segment. Net income applicable to Morgan Stanley swung from a loss of $94 million in Q1 2012 to a profit of $962 million in Q1 2013, with diluted EPS improving to $0.48 from a loss of $0.06. This turnaround is partly attributable to a substantial reduction in the negative impact of Debt Valuation Adjustment (DVA). The Global Wealth Management Group also demonstrated resilience, with net revenues increasing and income from continuing operations before taxes showing a healthy rise. Asset Management also saw improved revenues and pre-tax profit. Despite ongoing global economic uncertainties, Morgan Stanley navigated the environment effectively, showcasing improved operational performance across its key segments.
Financial Highlights
39 data points| Revenue | $8.17B |
| Operating Income | $981.00M |
| Interest Expense | $1.21B |
| Net Income | $962.00M |
| EPS (Basic) | $0.49 |
| EPS (Diluted) | $0.48 |
| Shares Outstanding (Basic) | 1.90B |
| Shares Outstanding (Diluted) | 1.94B |
Key Highlights
- 1Consolidated net revenues increased by 17.8% to $8.16 billion in Q1 2013 from $6.92 billion in Q1 2012.
- 2Net income applicable to Morgan Stanley turned positive, reaching $962 million in Q1 2013, a substantial improvement from a net loss of $94 million in Q1 2012.
- 3Earnings per diluted common share improved significantly to $0.48 in Q1 2013 from a loss of $0.06 in Q1 2012.
- 4The Institutional Securities segment saw a robust increase in income from continuing operations before taxes, moving from a loss of $329 million in Q1 2012 to a profit of $798 million in Q1 2013.
- 5Global Wealth Management Group's income from continuing operations before taxes rose by 48% year-over-year to $597 million.
- 6Fee-based client assets as a percentage of total client assets increased to 35% from 31% year-over-year, indicating a shift towards more recurring revenue streams.
- 7The negative impact of Debt Valuation Adjustment (DVA) on net revenues significantly decreased to $317 million in Q1 2013 from $1.978 billion in Q1 2012.