Morgan Stanley Q4 profit tanks 32%

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on Jan 16, 2024
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  • 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.

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Morgan Stanley (NYSE: MS), on January 16th, reported a 32% annualised decline in its fourth-quarter profit related partially to weakness in institutional securities.

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Morgan Stanley beats revenue estimates

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The 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?

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Morgan 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.

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