Morgan Stanley reports mixed Q2 2022 earnings results

Morgan Stanley (NYSE: MS) has announced its Q2 2022 earnings results that missed estimates. The Company reported earnings of $1.44 per share, missing analysts' estimates of $1.57 per share.

Revenue was $13.1 billion in Q2 2022

Revenue in the second quarter was $13.1 billion compared to consensus estimates of $13.39 billion. A year ago, the Company reported revenue of $14.1 billion. Net income applicable to the Company's shareholders was $2.5 billion or $1.39 per share relative to net income of $3.5 billion or $1.85 for each diluted share.

Chairman and CEO James Gorman said:

 The strong revenue was attributable to the Company's diversified franchise, a business steered through a challenging environment. Institutional securities revenue was $6.1 billion versus $7.1 billion, with pre-tax income of $1.6 billion relative to $2.5 billion in the same quarter a year ago. The Wealth Management segment generated net revenue of $5.7 billion relative to $6.1 billion a year ago, with asset management revenues increasing 2% while transaction revenues dropped 17%. The

The Investment Management segment posted revenue of $1.4 billion versus $1.7 billion in Q2 2021. Asset management and associated fees dropped from a year ago due to low AUM, mainly because of the decline in equity markets.

Morgan Stanley completed, a $12 billion share repurchase

The Company completed its $12 billion share buyback program during the quarter by repurchasing $2.7 billion worth of its outstanding ordinary shares. Also, Morgan Stanley confirmed a multi-year share repurchase approval of around $20 billion of its outstanding common shares without a specific expiry date. 

The Morgan Stanley Board of Directors announced a quarterly dividend of $0.775 per share, which is an 11% increase from the current $0.7 per share. The dividend will be payable on August 15, 2022, to shareholders that will be on record as of July 29, 2022.