Morgan Stanley Q2 Results Top Estimates

(RTTNews) - Financial services firm Morgan Stanley (MS) reported Tuesday a net profit for the second quarter that increased 44 percent from last year, driven by revenue growth across its operating segments and sharply lower provisions for credit losses. Both earnings per share and quarterly revenues topped analysts' estimates. The firm also boosted its quarterly dividend.

"The Firm delivered another strong quarter in an improving capital markets environment, resulting in first half 2024 revenues of $30.2 billion, EPS of $3.85 and an ROTCE of 18.6%. Total client assets grew to $7.2 trillion on our road to $10+ trillion," said CEO Ted Pick.

For the second quarter, net income applicable to the company's common shareholders increased 44 percent to $2.94 billion or $1.82 per share from $2.05 billion or $1.24 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $1.65 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter increased 12 percent to $15.02 billion from $13.46 billion in the same quarter last year. Analysts expected revenues of $14.30 billion for the quarter.

Net interest income increased 3 percent to $2.07 billion and non-interest income grew 13 percent to $12.95 billion from last year. Total non-interest expenses increased 4 percent to $10.87 billion from last year.

The company's provision for credit losses were $76 million, compared to $161 million in the year-ago quarter.

Institutional Securities net revenues grew to $6.98 billion from $5.65 billion, reflecting strong performance across the broad franchise, with notable strength in Equity amid higher client activity, as well as in Investment Banking amid robust debt underwriting results. Wealth Management net revenues increased 2 percent to $6.80 billion from last year's $6.66 billion, reflecting record asset management revenues driven by cumulative fee-based asset flows and a positive market environment.

Investment Management net revenues were $1.39 billion, up 8 percent from $1.28 billion a year ago, driven by increased asset management revenues amid higher average Assets Under management (AUM) of $1.52 trillion.

The company's board of directors declared a $0.925 quarterly dividend per share, payable on August 15, 2024 to common shareholders of record on July 31, 2024.

The company also reauthorized a multi-year repurchase program of up to $20 billion of outstanding common stock without a set expiration date.

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