Summary
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%.
Financial Highlights
34 data points| Interest Expense | $11.13B |
| Net Income | $3.41B |
| EPS (Basic) | $2.04 |
| EPS (Diluted) | $2.02 |
| Shares Outstanding (Basic) | 1.60B |
| Shares Outstanding (Diluted) | 1.62B |
Key Highlights
- 1Morgan Stanley reported a 4% increase in net revenues to $15.1 billion and a 19% increase in net income applicable to common shareholders to $3.3 billion for Q1 2024 compared to the prior year quarter.
- 2The firm achieved a Return on Equity (ROE) of 14.5% and a Return on Tangible Common Equity (ROTCE) of 19.7%, indicating improved profitability.
- 3Institutional Securities net revenues rose 3% to $7.0 billion, driven by higher underwriting and equity results, offsetting a decline in advisory.
- 4Wealth Management saw a 5% increase in net revenues to $6.9 billion, supported by higher asset management revenues and $95 billion in net new assets.
- 5Investment Management's net revenues grew 7% to $1.4 billion, benefiting from higher average assets under management.
- 6The Standardized Common Equity Tier 1 capital ratio remained strong at 15.0% as of March 31, 2024.
- 7The Provision for Credit Losses significantly decreased to a net release of $6 million from $234 million in the prior year quarter, reflecting an improved macroeconomic outlook.