- Morgan Stanley‘s net revenue for Q2 was $16.79 billion, surpassing the estimate of $16.04 billion.
- Wealth management net revenue reached $7.76 billion, exceeding the expected $7.35 billion.
- Equities sales and trading revenue amounted to $3.72 billion, higher than the predicted $3.53 billion.
- FICC sales and trading revenue was $2.18 billion, compared to the estimate of $2.11 billion.
- Institutional Investment Banking revenue came in at $1.54 billion, beating the estimate of $1.44 billion.
- Advisory revenue was slightly below expectations at $508 million, with an estimate of $529.6 million.
- Equity underwriting revenue was $500 million, above the estimate of $382.8 million.
- Fixed Income Underwriting revenue was almost on target at $532 million versus an estimate of $541.2 million.
- Earnings per share stood at $2.13.
- Total deposits amounted to $389.38 billion, outperforming the expected $379.12 billion.
- Non-interest expenses were $11.97 billion, slightly over the estimate of $11.51 billion.
- Compensation expenses were higher than expected at $7.19 billion, compared to $6.89 billion.
- Non-compensation expenses were $4.78 billion, exceeding the estimate of $4.65 billion.
- Wealth Management pretax profit was $2.20 billion, above the anticipated $2.02 billion.
- Book value per share was $61.59, with tangible book value per share at $47.25.
- Return on equity stood at 13.9%, outperforming the estimate of 12.7%.
- Return on tangible equity was 18.2%, higher than the estimated 16.7%.
- Standardized CET1 ratio was 15%, below the expected 15.3%.
- Provision for credit losses was $196 million, higher than the estimate of $130.8 million.
- Effective tax rate was slightly lower than expected at 22.7% compared to 23.7%.
- Assets under management were $1.71 trillion, surpassing the estimate of $1.67 trillion.
- Fee-based asset flows were significantly higher at $42.8 billion, against an estimate of $23.14 billion.
- Negative equity net flows were $2.8 billion, better than the estimated negative $3.25 billion.
- Alternatives and Solutions net flows were $6.8 billion, slightly above the expected $6.46 billion.
- Expense efficiency ratio was 71%, slightly better than the estimated 72.1%.
- Fixed Income net flows were $6.8 billion, significantly exceeding the estimate of $2.5 billion.
A look at Morgan Stanley Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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
Based on the Smartkarma Smart Scores, Morgan Stanley shows a promising long-term outlook. The company scores high in Dividend and Momentum, indicating strong potential for dividends and positive market momentum. Additionally, the company scores moderately well in Value, Growth, and Resilience, reflecting a balanced performance across key factors.
Morgan Stanley, a bank holding company offering diversified financial services globally, operates a strong securities business catering to both individual and institutional investors. With a global presence in investment banking and asset management, Morgan Stanley is positioned to capitalize on growth opportunities and maintain resilience in the dynamic financial market.
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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