Morgan Stanley Q4 profit tanks 32%
- Morgan Stanley reported its financial results for Q4 on Tuesday.
- Here's what its CEO Ted Pick said in a press release today.
- Morgan Stanley stock is up roughly 25% versus its recent low.
Morgan Stanley (NYSE: MS), on January 16th, reported a 32% annualised decline in its fourth-quarter profit related partially to weakness in institutional securities.
Morgan Stanley beats revenue estimates
Copy link to sectionThe financial services behemoth saw its net income come in at $1.50 billion – down about 37% versus the previous quarter.
On a per-share basis, Morgan Stanley earned 85 cents a share in Q4. Ted Pick – its chief executive said in a press release today:
We begin 2024 with a clear and consistent business strategy and a unified leadership team. We are focused on achieving our long-term financial goals and continuing to deliver for shareholders.
At $12.9 billion, revenue of the New York listed firm printed up close to 1.2% versus a year ago but down nearly 3.0% versus the third quarter. Consensus was for Morgan Stanley to earn $1.07 a share on $11.93 billion in revenue.
What else was noteworthy in earnings release?
Copy link to sectionMorgan Stanley attributed the weakness in its recently concluded quarter also to a one-time $286 million charge related to an FDIC special assessment and another $249 million of legal charge.
Revenue from investment banking jumped 5.0% primarily on the back of strength in fixed income underwriting. According to CEO Ted Pick:
In 2023, the Firm reported a solid ROTCE against a mixed market backdrop and a number of headwinds.
The earnings report arrives more than a month after Morgan Stanley said artificial intelligence was a “weapon” against financial crimes as Invezz reported here. Shares of the multinational that Wall Street currently rates at “overweight” are trending slightly up in premarket following the earnings print on Tuesday.
