Morgan Stanley's Earnings: Q4 Beats Revenue Estimates Despite Profit Decline

Morgan Stanley MS reported a fourth-quarter net profit of $1.5 billion, or 85 cents per diluted share, compared to $2.2 billion or $1.26 in the prior year. 

The company reported revenues of $12.9 billion, beating the consensus of $12.75 billion.

The Wealth Management division generated $6.65 billion in revenue, unchanged Y/Y.

Investment Banking produced $1.32 billion in revenue, up by 5.3% Y/Y.

Investment Management net revenues were $1.46 billion, flat Y/Y, and AUM of $1.46 trillion.

Fixed Income net revenues increased 1.1% to $1.43 billion.

The net income declined 32% Y/Y due to higher costs in its wealth management division, which saw flat revenues and a nearly 10% rise in expenses. Additionally, the bank’s performance suffered due to a $249 million settlement with regulators related to a probe into its block trading business, the Financial Times reports. 

The results marked the end of James Gorman’s tenure as CEO, with Ted Pick taking over in January.

The Board of Directors declared an 85 cent quarterly dividend per share, payable on Feb. 15, 2024, to common shareholders of record on January 31, 2024.

The stock lost 7.6% last year versus the broader index SPDR Select Sector Fund – Financial XLF, which gained 4.8%.

Price Action: MS shares were down 3% at $86.96 at last check Tuesday.

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