Thomson Reuters
Morgan Stanley just reported fourth-quarter earnings that beat on the top and bottom lines.
The firm reported earnings per share of $0.81 on revenue of $9.02 billion.
The firm was expected to report adjusted earnings per share of $0.65 on revenue of $8.48 billion.
"We reported solid results in Sales & Trading and Advisory, and record revenues in Wealth Management, while managing expenses prudently," CEO James Gorman said in a statement.
"We are optimistic about opportunities in 2017 and beyond."
Here's the revenue break-down:
- Trading revenues were $3.2 billion ($2.77 billion expected).
- Fixed income sales and trading revenues beat expectations, coming in at $1.5 billion ($1.01 billion expected). That's up from $550 million in the year-ago quarter, "reflecting higher results across products" and improved market conditions, the firm said.
- Equity sales and trading revenues beat expectations at $2.0 billion ($1.84 billion expected). That's up from $1.8 billion in the prior-year quarter, the firm said, thanks in part to particularly strong performance in derivatives.
- The firm saw net trading losses of $234 million related to funding and liquidity and corporate loan hedging activity.
- Investment banking revenue came in at $1.38 ($1.11 billion expected).
- M&A advisory revenues of $628 million were up from $516 million in the year-ago quarter thanks to more deals getting completed.
- Equity underwriting revenues were down from the prior-year quarter, coming in at $225 billion vs. 352 million on loewr IPO volumes.
- Fixed income underwriting revenues were $421 million vs. $346 million in the year-ago quarter due to higher non-investment grad loan and bond fees.
- The firm reported record wealth management revenues of $4.0 billion for the quarter (up from $3.8 billion in the year-ago quarter).
In the same quarter last year, Morgan Stanley beat expectations, reporting diluted earnings per share of $0.43 ($0.32 expected) on revenue of $7.86 billion ($7.63 billion expected).
In the third quarter, Morgan Stanley beat expectations and had a record-breaking quarter for wealth management. The firm reported diluted earnings per share of $0.81 ($0.63 expected) on revenue of $8.91 billion ($8.14 billion expected).
Bank of America, JPMorgan, and Wells Fargo reported fourth-quarter earnings last week. Goldman Sachs and Citigroup report on Wednesday.
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