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Morgan Stanley CEO James Gorman speaks in New York, Could 6, 2014.
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Morgan Stanley on Tuesday, second-quarter earnings and income beat analyst expectations, helped by document asset administration outcomes.
Here is what the corporate reported:
Income: $1.24 per share versus $1.15 per share Refinitiv estimates income: $13.46 billion versus anticipated $13.08 billionThe financial institution mentioned earnings fell 13% to $2.18 billion, or $1.24 per share, on decrease buying and selling outcomes from a 12 months in the past and a spherical of layoffs that led to $308 million in severance prices. Gross sales elevated 2% to $13.46 billion.
Morgan Stanley shares rose 5%.
Below CEO James Gorman, Morgan Stanley’s reliance on asset administration has contributed to secure earnings and valuation relative to friends. Gorman, who took over the corporate in 2010, mentioned in Could that he was making ready to step down inside a 12 months, setting off a succession race on the Wall Avenue powerhouse.
“The corporate has delivered strong leads to a difficult market atmosphere,” Gorman mentioned within the press launch. “The quarter began with macroeconomic uncertainties and subdued buyer exercise, however ended on a extra constructive notice.”
Regardless of decrease market ranges that brought on some charges to fall from a 12 months in the past, second quarter asset administration revenues rose 16% to $6.66 billion on larger curiosity revenue, surpassing the $6.5 billion estimate of FactSet analysts surveyed. The division took in $90 billion in web new buyer belongings.
The financial institution’s Wall Avenue division underperformed. Institutional securities buying and selling posted an 8% drop in income to $5.65 billion, pushed by declines in buying and selling. Whereas inventory buying and selling generated $2.55 billion in income, above the $2.37 billion FactSet estimate, fastened revenue produced $1.72 billion, which was effectively under the $1.99 billion estimate.
Funding banking revenues of $1.08 billion had been about unchanged from a 12 months in the past and broadly consistent with analyst expectations.
Morgan Stanley shares are up barely this 12 months, in comparison with the roughly 20% drop within the KBW Financial institution Index.
On Friday, JPMorgan Chase, Citi group And Wells Fargo every reported earnings that exceeded analyst expectations at larger rates of interest. Goldman Sachs rounds up the income of the foremost banks on Wednesday.
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