NEW YORK, September 24, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Morgan
Stanley (NYSE: MS). Select highlights from the internally
released reports are being made available to the general public
(included below), with access to the entirety of the research
available to new members.
Today, membership is open to readers on a complementary basis at
the following URL: http://www.aciassociation.com/MS.pdf
Highlights from our MS Report include:
- Topping Analysts' Estimates - On July 20, 2015, U.S. banking giant Morgan Stanley
reported its Q2 2015 financial results. Morgan Stanley's revenues
increased to $9.74 billion,
representing a rise of 13% Y-o-Y. Excluding Debt Valuation
Adjustment (DVA), net revenues were $9.6
billion, beating Thomson Reuters' consensus revenue estimate
of $9.1 billion. Net income came in
at $1.8 billion or $0.85 per diluted share, vis-a-vis $1.9 billion or $0.92 per diluted share reported in Q2 2014.
Excluding DVA and the net discrete tax benefit in the prior year
quarter, net income was $1.7 billion
or $0.79 per diluted share, compared
with net income of $1.2 billion or
$0.58 per diluted share in the prior
year quarter. The bank's diluted earnings of $0.79 also exceeded the consensus estimate of
$0.74 per share.
- Strong Results for Institutional Securities - This
segment reported net revenues of $5.2
billion compared to $4.2
billion in the same quarter prior year. Excluding DVA, net
revenues were $5.0 billion, versus
$4.2 billion in the prior year
quarter. The release stated that Advisory revenues of $423 million, equity underwriting revenues of
$489 million and fixed income
underwriting revenues of $528 million
stood relatively unchanged from the prior year quarter, thus
reflecting a continued favorable market environment. However,
equity sales and trading net revenues jumped 27.8% Y-o-Y to
$2.3 billion, reflecting robust
performance across products and regions on higher levels of client
activity. Net revenue in Morgan Stanley's fixed income and
commodities unit was $1.3 billion,
compared to $1.0 billion a year ago.
The segment's pre-tax income from continuing operations was
$1.6 billion vis-a-vis $960 million in Q2 2014.
- Wealth Management's Performance -
This segment reported revenues of $3.9
billion compared with $3.7
billion a year ago. The release highlighted that asset
management fee revenues increased to $2.2
billion from $2.1 billion a
year ago reflecting an increase in fee based assets and positive
flows. Transactional revenues declined to $872 million from $991
million a year ago primarily reflecting lower revenues
related to investments associated with certain employee deferred
compensation plans and lower levels of new issue activity. Pre-tax
income from continuing operations was $885
million versus $763 million in
Q2 2014. Net interest income rose to $737
million from $577 million a
year ago on the back of higher deposit and loan balances. Wealth
Management bank deposits at the end of the quarter were
$132 billion.
- Positive Results for Investment Management - Net
revenues for this segment rose to $751
million from $705 million in
the corresponding quarter prior year, reflecting higher gains on
investments in the Merchant Banking and Real Estate Investing
business. Pre-tax income from continuing operations was
$220 million versus $209 million reported in Q2 2014. As of
June 30, 2015, the segment recorded
assets under management or supervision of $403 billion versus $399
billion a year ago.
To find out how this influences our rating on Morgan Stanley,
read the full report in its entirety here:
http://www.aciassociation.com/MS.pdf
--
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