- Net Revenues of $8.9 Billion and
Earnings per Diluted Share of $0.75
- Strong Performance in Sales &
Trading; Investment Banking Ranked #2 in Global Announced and
Completed M&A, Global Equity and Global IPOs1
- Wealth Management Pre-Tax Margin of
22.5%2,3
- Quarterly Dividend Increased 33% to
$0.20 per Share; Announced Share Repurchase of up to $3.5 Billion
through 2Q174
Morgan Stanley (NYSE:MS) today reported net revenues of $8.9
billion for the second quarter ended June 30, 2016 compared with
$9.7 billion a year ago.5 For the current quarter, net income
applicable to Morgan Stanley was $1.6 billion, or $0.75 per diluted
share,6 compared with income of $1.8 billion, or $0.85 per diluted
share,6 for the same period a year ago.5
The prior year quarter included DVA revenue of $182 million.
Excluding DVA in the prior year quarter, net income applicable to
Morgan Stanley was $1.7 billion, or $0.79 per diluted share.7
Compensation expense of $4.0 billion decreased from $4.4 billion
a year ago partially driven by lower revenues. Non-compensation
expenses of $2.4 billion decreased from $2.6 billion a year ago.
Results reflect execution of the Firm’s disciplined expense
management strategy.
The annualized return on average common equity was 8.3 percent
in the current quarter.8
Business Overview
- Institutional Securities net revenues
were $4.6 billion reflecting continued strength in Equity sales and
trading and solid performance in Fixed Income sales and trading,
partly offset by lower underwriting results.
- Wealth Management net revenues were
$3.8 billion and pre-tax margin was 22.5%.3 Fee based asset flows
for the quarter were $12.0 billion.
- Investment Management reported net
revenues of $583 million with assets under management or
supervision of $406 billion.
James P. Gorman, Chairman and Chief Executive Officer, said,
“Our results this quarter reflect solid performance in an improved
but still fragile environment. In the midst of market uncertainty,
we maintained our leadership positions across our core franchises
and continued our focus on prudent risk management and judicious
expense control. We remain committed to executing for our clients
and delivering on our strategic priorities for our
shareholders.”
Summary of Institutional Securities
Results (dollars in millions)
As Reported Excluding DVA
9 Net Pre-Tax Net Pre-Tax Revenue Income
Revenue Income 2Q 2016 (a) $4,578 $1,506 $4,578
$1,506 1Q 2016 (a) $3,714 $908 $3,714 $908
2Q 2015
$5,172 $1,622 $4,990 $1,440 a)
Effective January 1, 2016, the Firm early adopted the provision of
new accounting guidance that requires changes in DVA to be
presented in other comprehensive income as opposed to net revenues.
Results for 2015 were not restated pursuant to this guidance, and
as such, 2Q 2015 is the only period where net revenues and pre-tax
income are adjusted for the impact of DVA.5
INSTITUTIONAL SECURITIES
Institutional Securities reported pre-tax income from continuing
operations of $1.5 billion compared with pre-tax income of $1.6
billion a year ago, or $1.4 billion excluding DVA.5,9 Net revenues
for the current quarter were $4.6 billion compared with $5.2
billion a year ago, or $5.0 billion excluding DVA.5,9 The following
discussion for sales and trading excludes DVA from the prior year
period.
- Advisory revenues of $497 million
increased from $423 million a year ago on higher levels of
completed M&A. Equity underwriting revenues of $266 million
decreased from $489 million in the prior year quarter reflecting
significantly lower market volumes. Fixed income underwriting
revenues of $345 million decreased from $528 million in the prior
year quarter primarily reflecting lower bond and loan fees.
- Equity sales and trading net revenues
of $2.1 billion decreased from $2.3 billion a year ago reflecting
reduced volumes and levels of activity in Asia, partially offset by
better performance in Europe and the U.S.5,10
- Fixed Income & Commodities sales
and trading net revenues of $1.3 billion were consistent with the
prior year period, despite the sale of the Oil Merchanting business
in the fourth quarter of 2015.5,10
- Investment revenues of $76 million
increased from $16 million a year ago driven by mark-to-market
gains on business related investments.
- Other revenues of $138 million
decreased from $212 million a year ago reflecting mark-to-market
losses on held for sale loans and lower results in our Japanese
joint venture Mitsubishi UFJ Morgan Stanley Securities Co.,
Ltd.
- Compensation expenses of $1.6 billion
decreased from $1.9 billion a year ago on lower revenues and
continued expense discipline. Non-compensation expenses of $1.4
billion for the current quarter decreased from $1.7 billion a year
ago primarily reflecting lower volume driven expenses and broad
based expense discipline.
Morgan Stanley’s average trading Value-at-Risk (VaR) measured at
the 95% confidence level was $46 million for the current quarter,
unchanged from the first quarter of 2016 and compared with $54
million in the second quarter of the prior year.11
Summary of Wealth Management
Results (dollars in millions) Net Pre-Tax
Revenues Income 2Q 2016 $3,811 $859 1Q 2016 $3,668 $786 2Q
2015 $3,875 $885
WEALTH MANAGEMENT
Wealth Management reported pre-tax income from continuing
operations of $859 million compared with $885 million in the second
quarter of last year. The quarter’s pre-tax margin was 22.5%.3 Net
revenues for the current quarter were $3.8 billion compared with
$3.9 billion a year ago.
- Asset management fee revenues of $2.1
billion decreased from $2.2 billion a year ago reflecting lower
average fee rates related to fee-based accounts and lower market
levels, partially offset by positive flows.
- Transactional revenues12 of $798
million decreased from $872 million a year ago primarily reflecting
lower commission revenues and lower levels of new issue
activity.
- Net interest income of $829 million
increased from $737 million a year ago on higher deposit and loan
balances. Wealth Management client liabilities were $69 billion at
quarter end, an increase of $11 billion compared with the prior
year quarter.13
- Compensation expense of $2.2 billion
and non-compensation expenses of $800 million for the current
quarter were relatively unchanged from a year ago.
- Total client assets were $2.0 trillion
and client assets in fee based accounts were $820 billion at
quarter end. Fee based asset flows for the quarter were $12.0
billion.
- Wealth Management representatives of
15,909 produced average annualized revenue per representative of
$959,000 in the current quarter.
Summary of Investment
Management Results (dollars in millions)
Net Pre-Tax Revenues Income 2Q 2016 $583 $118 1Q 2016 $477
$44 2Q 2015 $751 $220
INVESTMENT MANAGEMENT
Investment Management reported pre-tax income from continuing
operations of $118 million compared with pre-tax income of $220
million in the second quarter of last year.
- Net revenues of $583 million decreased
from $751 million in the prior year primarily reflecting lower
investment gains and carried interest in infrastructure and private
equity investments. Asset management fees were relatively unchanged
from a year ago.
- Compensation expense for the current
quarter of $238 million decreased from $308 million a year ago,
principally due to a decrease in deferred compensation associated
with carried interest. Non-compensation expenses of $227 million
were relatively unchanged from a year ago.
- Assets under management or supervision
at June 30, 2016 were $406 billion. The business recorded net
outflows of $1.7 billion in the current quarter.
CAPITAL
As of June 30, 2016, the Firm’s Common Equity Tier 1 and Tier 1
risk-based capital ratios under U.S. Basel III Advanced Approach
transitional provisions were approximately 16.9% and 18.8%,
respectively.14
As of June 30, 2016, the Firm estimates its pro forma fully
phased-in Common Equity Tier 1 risk-based capital ratio (under U.S.
Basel III Advanced Approach) and pro forma fully phased-in
Supplementary Leverage Ratio to be approximately 15.8% and 6.1%,
respectively.14,15,16
At June 30, 2016, book value and tangible book value per common
share were $36.29 and $31.39,17 respectively, based on
approximately 1.9 billion shares outstanding.
OTHER MATTERS
The effective tax rate from continuing operations for the
current quarter was 33.5%.
During the quarter ended June 30, 2016, the Firm repurchased
approximately $625 million of its common stock or approximately 23
million shares. The Firm announced a share repurchase of up to $3.5
billion of common stock beginning in the third quarter of 2016
through the end of second quarter of 2017.4
The Board of Directors declared a $0.20 quarterly dividend per
share, payable on August 15, 2016 to common shareholders of record
on July 29, 2016.4
In addition, the Firm announced on July 19, 2016 the redemption
of all its issued and outstanding Trust Preferred securities.
Morgan Stanley is a leading global financial services firm
providing a wide range of investment banking, securities, wealth
management and investment management services. With offices in more
than 43 countries, the Firm’s employees serve clients worldwide
including corporations, governments, institutions and individuals.
For further information about Morgan Stanley, please visit
www.morganstanley.com.
A financial summary follows. Financial, statistical and
business-related information, as well as information regarding
business and segment trends, is included in the Financial
Supplement. Both the earnings release and the Financial Supplement
are available online in the Investor Relations section at
www.morganstanley.com.
NOTICE:
The information provided herein may include certain non-GAAP
financial measures. The definition of such measures or
reconciliation of such metrics to the comparable U.S. GAAP figures
are included in this earnings release and the Financial Supplement,
both of which are available on www.morganstanley.com.
This earnings release contains forward-looking statements.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on
which they are made and which reflect management’s current
estimates, projections, expectations or beliefs and which are
subject to risks and uncertainties that may cause actual results to
differ materially. For a discussion of additional risks and
uncertainties that may affect the future results of the Firm,
please see “Forward-Looking Statements” immediately preceding Part
I, Item 1, “Competition” and “Supervision and Regulation” in Part
I, Item 1, “Risk Factors” in Part I, Item 1A, “Legal Proceedings”
in Part I, Item 3, “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in Part II, Item 7
and “Quantitative and Qualitative Disclosures about Market Risk” in
Part II, Item 7A in the Firm’s Annual Report on Form 10-K for the
year ended December 31, 2015 and other items throughout the Form
10-K, the Firm’s Quarterly Reports on Form 10-Q and the Firm’s
Current Reports on Form 8-K, including any amendments thereto.
1 Source: Thomson Reuters – for the period of January 1, 2016 to
June 30, 2016 as of July 1, 2016.
2 The Firm prepares its Consolidated Financial Statements using
accounting principles generally accepted in the United States
(“U.S. GAAP” or “GAAP”). From time to time, Morgan Stanley may
disclose certain “non-GAAP financial measures” in the course of its
earnings releases, earnings conference calls, financial
presentations and otherwise. The Securities and Exchange Commission
(SEC) defines a “non-GAAP financial measure” as a numerical measure
of historical or future financial performance, financial positions,
or cash flows that is subject to adjustments that effectively
exclude, or include amounts from the most directly comparable
measure calculated and presented in accordance with U.S. GAAP.
Non-GAAP financial measures disclosed by Morgan Stanley are
provided as additional information to investors and analysts in
order to provide them with greater transparency about, or an
alternative method for assessing, our financial condition,
operating results, or prospective regulatory capital requirements.
These measures are not in accordance with, or a substitute for U.S.
GAAP, and may be different from or inconsistent with non-GAAP
financial measures used by other companies. Whenever we refer to a
non-GAAP financial measure, we will also generally define it or
present the most directly comparable financial measure calculated
and presented in accordance with U.S. GAAP, along with a
reconciliation of the differences between the non-GAAP financial
measure we reference and such comparable GAAP financial
measure.
3 Pre-tax margin is a non-GAAP financial measure that the Firm
considers useful for investors and analysts to assess operating
performance. Pre-tax margin represents income (loss) from
continuing operations before taxes divided by net revenues, two
U.S. GAAP reported amounts without adjustment.
4 On June 29, 2016, the Firm announced that it received no
objection from the Board of Governors of the Federal Reserve System
(“Federal Reserve Board”) to the Firm’s 2016 capital plan (“Capital
Plan”). The Capital Plan includes the repurchase of up to $3.5
billion of outstanding common stock for the four quarters beginning
in the third quarter of 2016 through the end of the second quarter
of 2017, an increase from $2.5 billion for the comparable four
quarter period in the 2015 Capital Plan, as well as an increase in
the Firm’s quarterly common stock dividend to $0.20 per share from
the current $0.15 per share, beginning with the common stock
dividend declared in the third quarter of 2016. The Federal Reserve
Board also asked the Firm to submit an additional capital plan by
December 29, 2016 addressing weaknesses identified in the Firm’s
capital planning process. Share repurchases under the Firm’s
existing program authorized by the Board of Directors will be
exercised from time to time through June 30, 2017, at prices the
Firm deems appropriate subject to various factors, including the
Firm’s capital position and market conditions.
5 Effective January 1, 2016, the Firm early adopted the
provision of new accounting guidance that requires unrealized gains
and losses from Morgan Stanley’s debt-related credit spreads and
other credit factors (Debt Valuation Adjustments, or DVA) to be
presented in Other comprehensive income as opposed to net revenues
and net income. Results for 2015 are not restated pursuant to that
guidance.
6 Includes preferred dividends and other adjustments related to
the calculation of earnings per share for the second quarter of
2016 and 2015 of approximately $157 million and $142 million,
respectively. Refer to page 13 of Morgan Stanley’s Financial
Supplement accompanying this release for the calculation of
earnings per share.
7 Excluding DVA from net income applicable to Morgan Stanley and
earnings (loss) per diluted share amounts are non-GAAP financial
measures that the Firm considers useful for investors and analysts
to allow better comparability of period-to-period operating
performance. The reconciliation of net income (loss) applicable to
Morgan Stanley, earnings (loss) per diluted share applicable to
Morgan Stanley common shareholders from a GAAP to non-GAAP basis is
as follows (Net income (loss) reconciliation and average diluted
shares are presented in millions):
2Q 2015 Net income (loss) applicable to MS -
GAAP $1,807 DVA impact $119 Net income (loss) applicable to MS -
Non-GAAP $1,688 Earnings (loss) per diluted share - GAAP
$0.85 DVA impact $0.06 Earnings (loss) per diluted share - Non-GAAP
$0.79 Average diluted shares - GAAP 1,960
8 Annualized return on average common equity (ROE) is a non-GAAP
financial measure that the Firm considers useful for investors and
analysts to allow better comparability of period-to-period
operating performance. The calculation of ROE uses net income
applicable to Morgan Stanley less preferred dividends as a
percentage of average common equity.
9 Institutional Securities net revenues and pre-tax income
(loss), excluding DVA, is a non-GAAP financial measure that the
Firm considers useful for investors and analysts to allow for
better comparability of period-to-period operating performance. The
reconciliation of net revenues and pre-tax income (loss) from a
GAAP to non-GAAP basis is as follows (amounts are presented in
millions - also see footnote 5):
2Q 2016 1Q 2016
2Q 2015 Net revenues - GAAP $4,578 $3,714 $5,172 DVA
impact n/a n/a $182 Net revenues - Non-GAAP $4,578 $3,714 $4,990
Pre-tax income (loss) - GAAP $1,506 $908 $1,622 DVA impact
n/a n/a $182 Pre-tax income (loss) - Non-GAAP $1,506 $908 $1,440
10 Sales and trading net revenues, including Fixed Income &
Commodities (FIC) and Equity sales and trading net revenues
excluding DVA are non-GAAP financial measures that the Firm
considers useful for investors and analysts to allow better
comparability of period-to-period operating performance. The
reconciliation of sales and trading, including FIC and Equity sales
and trading net revenues from a GAAP to non-GAAP basis is as
follows (amounts are presented in millions – also see footnote
5):
2Q 2016 2Q 2015 Sales &
Trading - GAAP $3,256 $3,504 DVA impact n/a $182 Sales &
Trading - Non-GAAP $3,256 $3,322 FIC Sales & Trading -
GAAP $1,297 $1,377 DVA impact n/a $110 FIC Sales & Trading -
Non-GAAP $1,297 $1,267 Equity Sales & Trading - GAAP
$2,145 $2,342 DVA impact n/a $72 Equity Sales & Trading -
Non-GAAP $2,145 $2,270
11 VaR represents the loss amount that one would not expect to
exceed, on average, more than five times every one hundred trading
days in the Firm’s trading positions if the portfolio were held
constant for a one-day period. Further discussion of the
calculation of VaR and the limitations of the Firm’s VaR
methodology is disclosed in Part II, Item 7A “Quantitative and
Qualitative Disclosures about Market Risk” included in the 2015
Form 10-K. Refer to page 6 of Morgan Stanley’s Financial Supplement
accompanying this release for the VaR disclosure.
12 Transactional revenues include investment banking, trading,
and commissions and fee revenues.
13 Wealth Management client liabilities reflect U.S. Bank
lending and broker dealer margin activity.
14 The Firm’s binding risk-based capital ratios for regulatory
purposes under U.S. Basel III are the lower of the capital ratios
computed under the (i) standardized approaches for calculating
credit risk risk-weighted assets (RWAs) and market risk RWAs (the
“Standardized Approach”); and (ii) applicable advanced approaches
for calculating credit risk, market risk and operational risk RWAs
(the “Advanced Approach”). At June 30, 2016, the binding ratio is
based on the Advanced Approach transitional rules. For information
on the calculation of regulatory capital and ratios for prior
periods, please refer to Part II, Item 7 “Liquidity and Capital
Resources - Regulatory Requirements” in the Firm’s 2015 10-K and
Part I, Item 2 “Liquidity and Capital Resources – Regulatory
Requirements” in the Firm’s 10-Q for the quarter ended March 31,
2016.
15 The pro forma fully phased-in Common Equity Tier 1 risk-based
capital ratio (Common Equity Tier 1) and pro forma fully phased-in
Supplementary Leverage Ratio (SLR) are non-GAAP financial measures
that the Firm considers to be useful measures for investors and
analysts to evaluate compliance with new regulatory capital
requirements that have not yet become effective.
16 U.S. Basel III requires the Firm to disclose information
related to its supplementary leverage ratio beginning on January 1,
2015, which through to the end of 2017 will include the effects of
transitional provisions. The supplementary leverage ratio will
become effective as a capital standard on January 1, 2018.
Specifically, beginning on January 1, 2018, the Firm must maintain
a Tier 1 supplementary leverage capital buffer of at least 2% in
addition to the 3% minimum supplementary leverage ratio (for a
total of at least 5%), in order to avoid limitations on capital
distributions, including dividends and stock repurchases, and
discretionary bonus payments to executive officers. The Firm’s pro
forma Supplementary Leverage Ratio estimate utilizes a fully
phased-in U.S. Basel III Tier 1 capital numerator and a denominator
of approximately $1.07 trillion. The Firm’s estimates are subject
to risks and uncertainties that may cause actual results to differ
materially from estimates based on these regulations. Further,
these expectations should not be taken as projections of what the
Firm’s supplementary leverage ratios or earnings, assets or
exposures will actually be at future dates. See “Risk Factors” in
Part I, Item 1A in the 2015 Form 10-K for a discussion of risks and
uncertainties that may affect the future results of the Firm.
17 Tangible common equity and tangible book value per common
share are non-GAAP financial measures that the Firm considers to be
useful measures of capital adequacy for investors and analysts.
Tangible common equity equals common equity less goodwill and
intangible assets net of allowable mortgage servicing rights
deduction. Tangible book value per common share equals tangible
common equity divided by period end common shares outstanding.
Morgan Stanley
Consolidated Financial Summary
(unaudited, dollars in millions, except
for per share data)
Quarter Ended
Percentage Change From: Six Months Ended
PercentageChange
June 30, 2016 Mar 31, 2016 June 30,
2015 Mar 31, 2016 June 30, 2015 June 30,
2016 June 30, 2015 Net revenues
Institutional Securities $ 4,578 $ 3,714 $ 5,172 23 % (11 %) $
8,292 $ 10,630 (22 %) Wealth Management 3,811 3,668 3,875 4 % (2 %)
7,479 7,709 (3 %) Investment Management 583 477 751 22 % (22 %)
1,060 1,420 (25 %) Intersegment Eliminations (63 )
(67 ) (55 ) 6 % (15 %) (130 )
(109 ) (19 %) Net revenues $ 8,909 $
7,792 $ 9,743 14 % (9 %) $ 16,701 $ 19,650
(15 %)
Income (loss) from continuing operations
before tax Institutional Securities $ 1,506 $ 908 $ 1,622 66 %
(7 %) $ 2,414 $ 3,435 (30 %) Wealth Management 859 786 885 9 % (3
%) 1,645 1,740 (5 %) Investment Management 118
44 220 168 % (46 %) 162
407 (60 %) Income (loss) from continuing operations before
tax $ 2,483 $ 1,738 $ 2,727 43 % (9 %) $ 4,221
$ 5,582 (24 %)
Net Income (loss) applicable
to Morgan Stanley Institutional Securities $ 988 $ 591 $ 1,087
67 % (9 %) $ 1,579 $ 2,837 (44 %) Wealth Management 516 493 561 5 %
(8 %) 1,009 1,096 (8 %) Investment Management 78
50 159 56 % (51 %) 128
268 (52 %) Net Income (loss) applicable to Morgan
Stanley $ 1,582 $ 1,134 $ 1,807 40 % (12 %) $
2,716 $ 4,201 (35 %)
Earnings (loss) applicable to Morgan
Stanley common shareholders
$ 1,425 $ 1,055 $ 1,665 35 % (14 %) $ 2,481
$ 3,979 (38 %)
Financial Metrics:
Earnings per diluted share $ 0.75 $ 0.55 $ 0.85 36 % (12 %)
$ 1.30 $ 2.03 (36 %) Earnings per diluted share excluding DVA $
0.75 $ 0.55 $ 0.79 36 % (5 %) $ 1.30 $ 1.93 (33 %) Return on
average common equity 8.3 % 6.2 % 9.9 % 7.2 % 12.0 % Return on
average common equity excluding DVA 8.3 % 6.2 % 9.1 % 7.2 % 11.3 %
Notes:
-
Effective January 1, 2016, the Firm early
adopted the provision of new accounting guidance that requires
unrealized gains and losses from Morgan Stanley’s debt-related
credit spreads and other credit factors (Debt Valuation
Adjustments, or DVA) to be presented in other comprehensive income
as opposed to net revenues and net income. This change is reflected
in the consolidated results and the Institutional Securities
segment for 2016. Results for 2015 were not restated pursuant to
this guidance.
-
Refer to End Notes, GAAP to Non-GAAP
Measures and Definition of Performance Metrics on pages 14-16 from
the Financial Supplement for additional information related to the
calculation of the financial metrics.
10
Morgan Stanley
Consolidated Income Statement Information (unaudited,
dollars in millions)
Quarter Ended
Percentage Change From: Six Months Ended
PercentageChange
June 30, 2016 Mar 31, 2016 June 30,
2015 Mar 31, 2016 June 30, 2015 June
30, 2016 June 30, 2015 Revenues:
Investment banking $ 1,224 $ 1,107 $ 1,614 11 % (24 %) $ 2,331 $
2,971 (22 %) Trading 2,746 2,065 2,973 33 % (8 %) 4,811 6,623 (27
%) Investments 126 (34 ) 261 * (52 %) 92 527 (83 %) Commissions and
fees 1,020 1,055 1,158 (3 %) (12 %) 2,075 2,344 (11 %) Asset
management, distribution and admin. fees 2,637 2,620 2,742 1 % (4
%) 5,257 5,423 (3 %) Other 243 80
297 * (18 %) 323
468 (31 %) Total non-interest revenues
7,996 6,893 9,045 16 % (12 %) 14,889 18,356 (19 %) Interest
income 1,667 1,747 1,386 (5 %) 20 % 3,414 2,870 19 % Interest
expense 754 848
688 (11 %) 10 % 1,602
1,576 2 % Net interest 913
899 698 2 % 31 %
1,812 1,294 40 % Net revenues
8,909 7,792 9,743
14 % (9 %) 16,701 19,650
(15 %) Non-interest expenses: Compensation and
benefits 4,015 3,683 4,405 9 % (9 %) 7,698 8,929 (14 %)
Non-compensation expenses: Occupancy and equipment 329 329 351 --
(6 %) 658 693 (5 %) Brokerage, clearing and exchange fees 484 465
487 4 % (1 %) 949 950 -- Information processing and communications
429 442 438 (3 %) (2 %) 871 853 2 % Marketing and business
development 154 134 179 15 % (14 %) 288 329 (12 %) Professional
services 547 514 598 6 % (9 %) 1,061 1,084 (2 %) Other 468
487 558 (4
%) (16 %) 955 1,230 (22
%) Total non-compensation expenses 2,411 2,371 2,611 2 % (8 %)
4,782 5,139 (7 %)
Total
non-interest expenses 6,426 6,054
7,016 6 % (8 %) 12,480
14,068 (11 %) Income
(loss) from continuing operations before taxes 2,483 1,738 2,727 43
% (9 %) 4,221 5,582 (24 %) Income tax provision / (benefit) from
continuing operations 833 578
894 44 % (7 %) 1,411
1,281 10 % Income (loss) from
continuing operations 1,650 1,160
1,833 42 % (10 %) 2,810
4,301 (35 %) Gain (loss) from
discontinued operations after tax (4 ) (3 )
(2 ) (33 %) (100 %) (7 )
(7 ) -- Net income (loss) $ 1,646 $ 1,157 $ 1,831 42 % (10
%) $ 2,803 $ 4,294 (35 %) Net income applicable to nonredeemable
noncontrolling interests 64 23
24 178 % 167 % 87
93 (6 %) Net income (loss) applicable to
Morgan Stanley 1,582 1,134
1,807 40 % (12 %) 2,716
4,201 (35 %) Preferred stock dividend /
Other 157 79 142
99 % 11 % 235 222
6 % Earnings (loss) applicable to Morgan Stanley common
shareholders $ 1,425 $ 1,055 $ 1,665
35 % (14 %) $ 2,481 $ 3,979
(38 %) Pre-tax profit margin 28 % 22 % 28 % 25 % 28 %
Compensation and benefits as a % of net revenues 45 % 47 % 45 % 46
% 45 % Non-compensation expenses as a % of net revenues 27 % 30 %
27 % 29 % 26 % Effective tax rate from continuing operations 33.5 %
33.3 % 32.8 % 33.4 % 22.9 % Notes:
- Refer to End Notes, GAAP to Non-GAAP Measures and
Definition of Performance Metrics on pages 14-16 from the Financial
Supplement for additional information.
11
Morgan Stanley
Earnings Per Share Summary (unaudited, dollars in
millions, except for per share data)
Quarter
Ended Percentage Change From: Six Months Ended
Percentage Change June 30, 2016 Mar 31,
2016 June 30, 2015 Mar 31, 2016 June 30,
2015 June 30, 2016 June 30, 2015
Income (loss) from continuing operations $ 1,650 $ 1,160 $
1,833 42 % (10 %) $ 2,810 $ 4,301 (35 %) Net income applicable to
nonredeemable noncontrolling interests 64 23
24 178 % 167 % 87 93
(6 %)
Income (loss) from continuing operations applicable
to Morgan Stanley 1,586 1,137 1,809 39 % (12 %) 2,723 4,208 (35
%) Less: Preferred Dividends and allocation of earnings to
Participating Restricted Stock Units 157 79
142 99 % 11 % 235 222
6 %
Income (loss) from continuing operations applicable
to Morgan Stanley 1,429 1,058 1,667 35 % (14 %) 2,488 3,986 (38
%) Gain (loss) from discontinued operations after tax (4 )
(3 ) (2 ) (33 %) (100 %) (7 ) (7 ) -- Less: Gain (loss) from
discontinued operations after tax applicable to noncontrolling
interests 0 0 0 -- -- 0 0 -- Less: Allocation of earnings to
Participating Restricted Stock Units 0 0
0 -- -- 0 0 --
Earnings (loss) from discontinued operations applicable to
Morgan Stanley common shareholders (4 ) (3
) (2 ) (33 %) (100 %)
(7 )
(7 ) --
Earnings (loss) applicable to
Morgan Stanley common shareholders $ 1,425
$ 1,055 $ 1,665 35 % (14 %)
$
2,481 $ 3,979 (38 %) Average basic
common shares outstanding (millions) 1,866 1,883 1,919 (1 %) (3 %)
1,875 1,922 (2 %)
Earnings per basic share: Income from
continuing operations
$ 0.77 $ 0.56
$ 0.87 38 % (11 %)
$ 1.33 $
2.07 (36 %) Discontinued operations
$ (0.01
) $ - $ - *
*
$ (0.01 ) $ - * Earnings per
basic share
$ 0.76
$ 0.56 $ 0.87
36 % (13 %)
$ 1.32
$ 2.07 (36 %) Average diluted
common shares outstanding and common stock equivalents (millions)
1,899 1,915 1,960 (1 %) (3 %) 1,907 1,962 (3 %)
Earnings
per diluted share: Income from continuing operations
$
0.75 $ 0.55 $ 0.85 36 % (12 %)
$ 1.30 $ 2.03 (36 %) Discontinued
operations
$ - $ - $ - --
--
$ - $ - -- Earnings per diluted
share
$ 0.75
$ 0.55 $ 0.85
36 % (12 %)
$ 1.30
$ 2.03 (36 %) Notes:
- Refer to End Notes, GAAP to Non-GAAP Measures and
Definition of Performance Metrics on pages 14-16 from the Financial
Supplement for additional information.
12
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160720005571/en/
Morgan StanleyMedia Relations:Michele Davis,
212-761-9621orInvestor Relations:Sharon Yeshaya, 212-761-1632
Morgan Stanley (NYSE:MS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Morgan Stanley (NYSE:MS)
Historical Stock Chart
From Sep 2023 to Sep 2024