- Morgan Stanley‘s net revenue for Q4 was $16.2 billion, surpassing the estimated $15.06 billion.
- Wealth management net revenue increased by 13% year-over-year to $7.48 billion, beating the $7.32 billion estimate.
- Equities sales and trading revenue saw a significant 51% rise year-over-year, reaching $3.33 billion compared to the $2.63 billion estimate.
- FICC sales and trading revenue was $1.93 billion, exceeding the $1.68 billion estimate.
- Institutional Investment Banking revenue fell short at $1.64 billion, slightly below the $1.71 billion estimate.
- Advisory revenue was $779 million, above the estimated $727.8 million.
- Equity underwriting revenue was $455 million, beating the estimate of $445.3 million.
- Fixed Income Underwriting revenue was below expectations at $407 million, against the $529 million estimate.
- Earnings per share were $2.22.
- Total deposits increased to $376.01 billion, surpassing the estimated $365.27 billion.
- Non-interest expenses were slightly lower at $11.20 billion, compared to the $11.26 billion estimate.
- Compensation expenses came in lower than expected at $6.29 billion against an estimate of $6.64 billion.
- Net interest income was $2.55 billion, higher than the $2 billion estimate.
- Wealth Management pretax profit was $2.1 billion, exceeding the estimate of $2 billion.
- The wealth management pretax margin was 27.5%, just above the 27.2% estimate.
- Return on equity was robust at 15.2%, outperforming the estimated 11.6%.
- Return on tangible equity was 20.2%, significantly above the estimated 15.5%.
- The standardized CET1 ratio was 15.9%, exceeding the predicted 15.1%.
- Provision for credit losses was $115 million, higher than the $73.9 million estimate.
- Assets under management totaled $1.67 trillion, above the $1.63 trillion estimate.
- Fee-based asset flows amounted to $35.2 billion, exceeding the high estimate of $32.5 billion.
- Nonsignificant negative equity net flows of $6.7 billion showed a year-over-year increase of 3.1%.
- Alternatives and Solutions net flows were $3.0 billion, missing the estimate of $6.1 billion but improving from last year’s negative $400 million.
- Fixed Income net flows totaled $8.0 billion, outperforming last year’s negative $200 million and the estimated $2.91 billion.
- The expense efficiency ratio was 69%, better than the estimated 74.4%.
- A $62 million charge-off was recorded, mostly linked to the commercial real estate sector.
- Non-compensation expenses decreased due to lower FDIC special assessments and reduced professional services costs post-integration.
- The Board of Directors declared a quarterly dividend of $0.925 per share, payable on February 14, 2025.
- Ted Pick noted strength across the markets in Institutional Securities.
“`
A look at Morgan Stanley Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 3 | |
Dividend | 4 | |
Growth | 3 | |
Resilience | 2 | |
Momentum | 5 | |
OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts utilizing the Smartkarma Smart Scores have provided a mixed but overall positive outlook for Morgan Stanley, a bank holding company offering diversified financial services worldwide. The company has received a solid score of 4 for Dividend, indicating strong potential for providing dividends to its shareholders over the long term. Additionally, its Momentum score of 5 suggests a high level of positive market momentum, which could bode well for its future performance.
However, Morgan Stanley received lower scores in other areas such as Resilience, indicating potential vulnerability to market fluctuations, and Value, suggesting that the current market price may not fully reflect the company’s intrinsic value. With moderate scores of 3 in both Growth and Value, it may indicate a stable but not exceptional growth potential for the company in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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