Get short term trading ideas from the MarketBeat Idea Engine. Having a dividend that's aligned to the more stable earnings from Wealth and Investment Management is a leading priority of this firm. Wealth Management pre-tax margin excluding integration-related expenses is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period operating performance. 1 Includes preferred dividends related to the calculation of earnings per share of $103 million and $149 million for the second quarter of 2021 and 2020, respectively. This compares to year-ago revenues of $13.41 billion. High yield bonds should comprise only a limited portion of a balanced portfolio. So that kind of gives you the change in those two numbers. First, investors in the S&P 500 Index may think they are getting exposure to a diversified basket of 500 companies. We'll take our next question from Dan Fannon with Jefferies. Can you give us a little color? "Overall, the firm delivered a solid quarter in what was a more volatile market environment than we have seen for some time," CEO James Gorman said in the release. Now we're retiring 5 shares. We can buy back up to $20 billion and a bunch that we are going to be doing, hopefully, in the low-70s. This year is probably a period of victory relative to what some happened to your peers. Thank you. We saw a bunch of headlines around hung deals, et cetera, during the quarter. We're still seeing functioning markets. Thats one of the most bearish predictions among those tracked by Bloomberg, and contrasts with bullish forecasts from the likes of Goldman Sachs Group Inc., which anticipates mild growth. In a note to investors seen by AppleInsider, the Q2 results will be "in-line" with its expectations. And Sharon talked about maybe delaying some projects. But why is the beta then higher, some of that beta just has to do with -- you have some higher balances. High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market. And I think they are important to bear in mind in this environment. It's kind of -- it's an accounting issue. The Buy rating comes on the back of the financial service company delivering Q2 results that topped estimates. Transactional revenues excluding the impact of mark-to-market gains on investments associated with employee deferred cash-based compensation plans is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow better comparability of period-to-period operating performance and capital adequacy. 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 U.S. GAAP financial measure. EPS of $1.53 misses by $0.07 | Revenue of $13.13B (-11.02% Y/Y) misses by $266.45M. On behalf of Morgan Stanley, I will begin the call with the following information and disclaimers. Health care sector stocks are subject to government regulation, as well as government approval of products and services, which can significantly impact price and availability, and which can also be significantly affected by rapid obsolescence and patent expirations. Non-compensation expenses increased from a year ago primarily driven by incremental expenses as a result of the E*TRADE acquisition. Morgan Stanley's stock has dropped 24% this year through Wednesday, worse than the 19% decline of the KBW Bank Index. Deposits declined $12 billion in the quarter to $340 billion. We'll take our next question from Brennan Hawken with UBS. MS scores a 9 out of 10 on TipRanks Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. And I think that what we're looking for is really -- is flexibility around the capital purchase plan. Transcript 10-Q. From our origins as a small Wall Street partnership to becoming a global firm of more than 80,000 employees today, Morgan Stanley has been committed to clients and communities for 87 years. The Firm expense efficiency ratio excluding integration-related expenses of 68.0% represents total non-interest expenses adjusted for integration-related expenses as a percentage of net revenues. Here are the key. The results confirm what some analysts had feared for Morgan Stanley, which runs one of the larger equity capital markets operations on Wall Street. These symbols will be available throughout the site during your session. And again, a lot of that is informed by what we saw in the last rate hike cycle. So, listen, if the option is to trigger another 50 basis points on the SCB or generate another, I don't know, $100 million, $200 million in revenue. Institutional revenue of over $6 billion demonstrates the power of our balanced franchise against the difficult market backdrop. And we are managing, I mean I guess it's quasi plan B., managing the RWAs as we just said in the balance sheet, reflecting a more stressed environment. So, the LTVs are very well managed. Frequent marijuana users tend to be leaner and less likely to develop diabetes. Conversion to realize will largely be dependent on market conditions and corporate confidence. Meanwhile, tactical rebalancing could also favor emerging markets over the next six to 12 months. Seven Summer Camps Just for Adults, Number of Young Britons Too Sick to Work Doubles in a Decade, Wells Fargo Seeks to Settle Banking While Black Mortgage Case, A $4 Billion Oil Pipeline Creates a Climate Dilemma for Africa, Trudeau Is Betting$9 Billion on a Plan to Clean Up the Worlds Dirtiest Oil, Istanbul Wants to Make Urban Data Available to Everybody, US Mayors Cite Unprecedented Mental Health Crisis as Top Concern, New Jersey Senior-Living Facilitys Woes Exacerbated by Construction Delays, Bankman-Fried Was Schooled in Earning to Give and Playing to Win, Behind Sam Bankman-Frieds Journey From Hero to Handcuffs, Binances Regulatory Woes Pave a Path for CEO Zhaos Heir Apparent. A quarter ago, it was expected that this investment bank would post earnings of $1.72 per share when it actually produced earnings of $2.22, delivering a surprise of 29.07%. Terms of Service apply. We like having excess capital for exactly this environment we are in now. We met as a Management Committee last September, I think and I spoke to the Management Committee about I felt there was much more downside risk to the market. The outflows were largely in line with our expectations. Learn how it impacts everything we do, Xcel Energy: Minnesota Regulators Surprise Investors With Disappointing Rate Decision, Franklin Resources: Distribution Deal With Great-West Could Be More Valuable to Franklin Than Putnam, Dominion Energy: Stock Remains Value Trap With Few Near-Term Catalysts, Capri: Faces Near-Term Challenges but Continues to Develop Its Three Brands. Are there any other options that you ponder like maybe using that capital to grow share in any parts of the business or just safe at rainy day, like I am curious on how that dynamic works being one of the only ones with the excess position? Return on tangible equity of % vs Ordinarily, we wouldn't call out DCP. For us, as we disclosed in our Q, the factors that we look at that are most important is really around GDP. All rights reserved. They said easing inflation likely signals a Fed pause and that dollars delivered during the pandemics darkest days will support the stock market. In terms of what are they doing with that money, I think what you do see is a lot of the money ends up moving into fee-based over time, right? I think what's important as we look forward, in terms of where is the floor, look, we have said historically, we don't expect to be in that very low single-digit range, which we were before the acquisition of E TRADE. Investment Management benefited from its diversification, and we saw continued momentum in private alternatives, parametric customized portfolios and the countercyclicality of our money market business. Net income applicable to shareholders was $2.39 billion or $1.39 per share in the second quarter of 2022, compared to $3.41 billion or $1.85 per share in the [] Our EPS was $1.39, and our ROTCE was 13.8%. To read this article on Zacks.com click here. No, it's okay. So, appreciate that you all right-sized the business a few years ago. We'll take our next question from Ebrahim Poonawala with Bank of America. Investor Relations: Leslie Bazos 212-761-5352, Internet Explorer presents a security risk. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. I think you hit on the head, the environment -- if I had to use one word to describe it, it would be complicated. We don't make a big deal of it. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. And so some of that higher balanced amount begins to leave seeking out higher-yielding payments. Zacks Research also issued estimates for Morgan Stanley's Q3 2023 earnings at $1.51 EPS, Q1 2024 . Despite the decline in global asset prices, our expanded product set in Investment Management proved supportive to that business. Maybe, Sharon, some more specifics around the buyback, just thinking about how you're thinking about buybacks in the second half of the year. All Rights Reserved. As a management team, our priority is to diligently address what we can control given the market realities. Hi, good morning. Thank you. How does it say this quarter was unusually noisy for Morgan Stanley and I think you kind of put up your lowest ROE in almost two years. But there is somewhat of -- there is a pause, I think, people are waiting and observing in certain end markets to deploy that cash. 5 Sustainable Investing Trends for Companies and Investors, 7 Investment Ideas That Could Drive Markets in 2023, Yes, You Can Be a Tech Innovator at Morgan Stanley. I wanted to follow-up on Steve's questions on deposit beta, but rather talk about the balance side of things. Across all our businesses, we offer keen insight on today's most critical issues. Lower asset values will impact revenue in both Wealth and Investment Management. This compares to earnings of $2.04 per share a year ago.. We deliver active investment strategies across public and private markets and custom solutions to institutional and individual investors. Thanks. Revenues rose 39% from the company's investment banking division, and . That said, trading revenue is volatile and its one of the only revenue lines that has held up well and is arguably abnormally high, so it cant be counted on to offset economic pressures in other revenue lines. And does it make sense to have a loan growth target? Our Wealth and Investment Management businesses attracted $120 billion in flows and Institutional Securities generated over $7 billion in revenues., According to the CEO, Morgan Stanleys global franchise is well-positioned to drive further growth. See how you can continue your career journey at Morgan Stanley. So, we are not often that excited about it. Institutional Securities net revenues of $7.1 billion reflect strong results as clients remained active across Investment Banking and Equity. Wealth Management benefited from its scale and rising rates. We sell different types of products and services to both investment professionals and individual investors. And then when we think about the SBL book, you flagged the $22 billion of continued loan growth. And where does it make sense from a business perspective given the uncertainty, and I think there is a very -- as I said, the same way when we think about the expenses, it's about being efficient and thoughtful and very prudent and flexible with all of that environment. Wealth Management delivered a pre-tax margin of 26.8% or 27.8% excluding integration-related expenses. During today's presentation, we will refer to our earnings release and financial supplement, copies of which are available at morganstanley.com. But at what point do you pull the lever on kind of plan B? Good morning. 11 Wealth Management fee-based asset flows include net new fee-based assets, net account transfers, dividends, interest, and client fees, and excludes institutional cash management related activity. Against the challenging public market environment, our results demonstrate the benefits of our diversified product mix, particularly with strength in our portfolio solutions led by Parametric customization and private alternative funds as well as our liquidity offering. Learn from our industry leaders about how to manage your wealth and help meet your personal financial goals. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. Earnings per share for the S&P 500 are set to drop 16% this year, according to Morgan Stanley strategists led by Andrew Sheets. We have also got a lot of regulatory obligations. And obviously, it's driven in part by volatility in the market, so things outside of their control. Turning to Investment Management, revenues were $1.4 billion. James P. Gorman, Chairman and Chief Executive Officer, said, The Firm delivered another very strong quarter, with contributions from all of our businesses. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Good morning. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Fixed income underwriting revenues decreased from a year ago primarily due to lower investment grade and non-investment grade bond issuances partially offset by strength in non-investment grade loans. Morgan Stanley strategists anticipate a sudden pullback in corporate earnings will slam the brakes on a US equity rally, a call at odds with Wall Street estimates. Deposit beta is just one piece of that conversation, the behavior and then also how we continue to build in an aggregate, be it new assets through NNA and also various types of, as you call it, cash sorting, but the movements of cash between products and that behavior of deposits. So people are engaged, people are active, and they are seeking advice from their FAs. It's a great question and you draw a good point distinction. Morgan Stanley (MS) came out with quarterly earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.63 per share. I don't think this is the time to be overly aggressive personally. Now to the businesses. Look at the PPNR number, was materially up as stress losses were also up, not surprisingly. Thank you. So what we like to do with their money, invest it in the business, check; give you a smart dividend with a 4% yield, check; and do buybacks and have flexibility around it when the stock is trading. Everything we do at Morgan Stanley is guided by our five core values: Do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back. Q2: 2021-07-15 Earnings Summary EPS of $1.89 beats by $0.23 | Revenue of $14.76B (10.03% Y/Y) beats by $763.58M Morgan Stanley ( NYSE: MS.PK) Q2 2021 Earnings Conference Call July 15,. And Infrastructure Software . Our funded ratio on corporate loans stands at approximately 11%, in line with pre-pandemic levels and well below the first quarter 2020 peak of approximately 25%. Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice for additional information. Net revenue only decreased 2% from the previous year and sequentially increased 14%. So, we did see some pull forward, and that's all we are reflecting in that. Those numbers were unheard of a few years ago. That's helpful. These products and services are usually sold through license agreements or subscriptions. As such, we increased our quarterly dividend by 11% and announced a $20 billion multiyear buyback program. Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals. And so from that perspective, we have been very focused on the equities business more holistically for over a decade now. Earnings per share: $1.39 vs. $1.53 expected, Revenue: $13.13 billion vs. $13.48 billion expected. What products are they going to? And then Europe is obviously is fighting the hardest right now because of the war in the Ukraine, because of the pressure on gas and gas prices and so on. This quarterly report represents an earnings surprise of 15.95%. I think that what you can look at and think about it is, obviously, the economic scenario makes sense. We regard our capital ratios as sacrosanct. Okay. We said that 11% was too high. Excluding the impact of DCP, transactional revenues declined 17%. We have got enormous political change just here in this country, the UK, where I am at the moment. So account balances that are higher might also have gone up over time. Sign up for free newsletters and get more CNBC delivered to your inbox. Exactly how it will pan out, what I can say to you is that it does look -- it's still healthy, and we're still -- we still feel well positioned. They have materially gained share. They are one and the same. Our global franchise is very well positioned to drive further growth., Institutional Securities reported net revenues for the current quarter of $7.1 billion compared with $8.2 billion a year ago. So just how are clients holding up on the institutional side? Resources, we think about it very holistically and part of our strategic decision-making process. These are a big deal for us. Consider the following: To sum up, U.S. stock-market performance has increasingly been driven by just a few companies that all share similar market cap, sector exposure and valuations. We have -- CET1 capital ratio is 200 basis points above our requirement. Hey. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Yes, that number is going to keep moving. Our EPS was $1.39, and our ROTCE was 13.8%. With offices in more than 41 countries, the Firms employees serve clients worldwide including corporations, governments, institutions and individuals. Equity net revenues increased from a year ago driven by high levels of client activity with particular strength in Asia. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Sure. Our ROTCE was nearly 14%. Total net new assets were $53 billion in the quarter, bringing year-to-date NNA to $195 billion, representing a 6% annualized growth rate. I just want to add something. By several measures, performance was strong despite the volatile backdrop. And if somewhat -- some deliberate actions, can you kind of give us a little more clarity on what those actions were specifically and if that can continue? Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. So when I look at Morgan Stanley, sort of added all together, we did exactly what we wanted to do this quarter. Get this delivered to your inbox, and more info about our products and services. I mean your CET1 did grow quarter-over-quarter, but I think a little of that was RWA declining. A career at Morgan Stanley means belonging to an ideas-driven culture that embraces new perspectives to solve complex problems. The Securities and Exchange Commission defines a non-GAAP financial measure as a numerical measure of historical or future financial performance, financial position, 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. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on theearnings call. Chief Financial Officer at Morgan Stanley. Firm net revenues of $14.8 billion and net income of $3.5 billion reflect strong performance with contributions across each of our business segments and geographies. MS scores a 9 out of 10 on TipRanks' Smart Score rating system, indicating that the stock. Type a symbol or company name. Thanks for that. This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. Renewed Analyst Sentiment for CBRE Group Stock: Buy the Dip? And so those balances should be in a position where you should have an average weighted beta that's lower over time. This earnings release may contain forward-looking statements, including the attainment of certain financial and other targets, objectives and goals. But right now, we are definitely not in a sort of crisis mode at all. Why, because you accumulated them likely at periods of time where yields were lower, and there was excess cash that was sitting in position. So, I think the best way to kind of answer your question a little bit more head on in terms of where the underlying crux is, is we have seen balances also increase in the higher account level. NNA was driven by existing and new clients in the adviser-led channel, stock plan vesting events, positive net recruiting and self-directed channel inflows. It depends how COVID rolls out, and it's sort of reemerging a little bit in some countries. And the reason for that is it is a very well-managed book. The top 10 stocks have an average ratio of 28, and the top three average a staggering 66. Secondly, the quarter results also included the legal costs of $200 million that reflects the likely resolution of regulatory investigations by the SEC and the CFTC regarding employees' use of unapproved personal devices and the firm's record-keeping requirements. What Should Investors Make of These 3 Dividend Cuts? But what we have seen is an increase in balances. The benchmark is on the edge of a bull market following a 19.7% rally from an October low, gaining amid enthusiasm for artificial-intelligence stocks despite rate hikes from the Federal Reserve and concerns about a potential recession. All rights reserved. Instead, they are bullish on equities in Japan, Taiwan and South Korea and recommend an overweight position in developed-market government bonds, including long-dated Treasuries, and the dollar. These credit metrics have ticked up due to the probability of a recession and pressure in commercial real estate markets but arent that concerning given the company has loans of about $200 billion and an allowance for credit losses of $1.5 billion. From our startup lab to our cutting-edge research, we broaden access to capital for diverse entrepreneurs and spotlight their success. The dividend prospects of three large-cap companies. You might not have those conversations as much with the asset values coming down. As a result, Q2 GAAP diluted net earnings per share was $1.07, mostly due to onetime noncash tax benefits related to tax planning. Thank you. Thank you. We have the experience and agility to partner with clients from individual investors to global CEOs. Thanks. But how are you thinking about loss rates on those new loans given perhaps a new economic forecast? Hi, thanks. Listen, I want to make an important point here. And that helps to explain the deposit beta, which we see now based again, as I said, on that deposit composition mix. Compensation expense increased from a year ago primarily driven by incremental compensation expenses as a result of the Eaton Vance acquisition, Non-compensation expenses increased from a year ago primarily driven by incremental expenses as a result of the Eaton Vance acquisition. Kind of what's the risk in that portfolio? Maybe just on the RWA decline, was that a deliberate reduction, or is that more market-driven? And as we win mandates, it's not just on the tech side. There really has to do with the deposit composition mix that we have. Long-term investors should consider moving away from U.S. passive index exposures toward opportunities in small-cap, value-style and cyclical stocks. That will come from the line of Joseph Moore with Morgan Stanley. Morgan Stanley is differentiated by the caliber of our diverse team. Sure. However, in Wealth Management, rising rates are already driving NII higher, supporting performance and net new assets remain healthy in Investment Management. The integration-related expenses include $25 million in compensation expense and $65 million in non-compensation expense. The report will be for the fiscal Quarter ending Mar 2023. Thank you. I like the 50 basis points that we haven't had to trigger that some of our competitors have. What changes -- what has changed is the mix of the actual flows themselves. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices If you look at the Wealth Management margins, we did a 27% margin, including integration this quarter, 28% without it. Yes. Advisory revenues increased from a year ago on higher M&A completed transactions. Our cash position is higher than they usually are. I'm curious, what are they doing with it? You see that on the balance side. Net revenues increased 30% from a year ago: Investment Management reported net revenues of $1.7 billion compared with $886 million a year ago. Net new assets in Wealth Management of over $50 billion, despite the volatility and clients tax-related withdrawals in the quarter, underscored the scale of our business and its power to attract assets. Morgan Stanley strategists anticipate a sudden pullback in corporate earnings will slam the brakes on a US equity rally, a call at odds with Wall Street estimates. Net interest income was $1.7 billion, up notably from the prior year, driven by higher rates and continued strong bank lending growth. That's built into the model. While the marks on these investments are substantially offsetting compensation expense, they created a significant drag on top line revenues in the quarter across the firm, particularly in Wealth Management, where the impact of revenues exceeded $500 million. View which stocks are hot on social media with MarketBeat's trending stocks report. contact@marketbeat.com 13 AUM is defined as assets under management. The unvested asset values declined about 33%. And I was also hoping you could just speak to the cadence of flows from April to June, just to give us a sense as to how organic growth is trajecting over the course of the quarter? We provide comprehensive workplace financial solutions for organizations and their employees, combining personalized advice with modern technology. Create your Watchlist to save your favorite quotes on Nasdaq.com. And then just as a follow-up, given the backdrop we're in where revenues are a bit more challenged or uncertain. Well, the cadence is obviously -- you're not going to -- you've seen more in the second quarter -- I mean you've seen a different mix, right, in the second two months than the first month because you had a tax outflow season. Investment Banking revenues up 16% from a year ago: Equity net revenues up 8% from a year ago: Fixed Income net revenues down 45% from a year ago: Wealth Management reported net revenues for the current quarter of $6.1 billion compared with $4.7 billion from a year ago. So, we started pulling back, Mike, at that point. Published Jul 16, 2020 11:31AM EDT Morgan Stanley 's MS second-quarter 2020 adjusted earnings of $2.04 per share hugely surpassed the Zacks Consensus Estimate of $1.17. This was driven by an increase in savings account rates and deposit mix. Copyright 2023 Morningstar, Inc. All rights reserved. Good morning. So just to provide that balance, of course, it's not the same thing as having a green screen every single day. And then thirdly, you're the largest gatherer of alternative assets. Any way to frame, does it double or triple? Here, you take it. There is a -- the fixed income business has gone from doing, I don't know what they were doing, $500 million, $600 million a quarter in the back half of 2015. The test was incredibly demanding in this environment. Overall, our integration with Eaton Vance continues to progress well. While the uncertain macroeconomic environment has kept investment banking revenue lowa 24% decline from the previous year and over 50% decline from the 2021 quarterly averageit has helped trading revenue. As a global financial services firm, Morgan Stanley is committed to technological innovation. Yes. Maybe as a follow-up on that, James, I think you have talked about hoping the change in the mix of your business over time would push your DFAS losses and SCB down slightly. Okay. Listen, the stocks trading, I don't know what it is this morning, $72 or something, it was $109 a couple of months ago. Earnings Releases But from a historical basis, we have always been within that -- sort of given a 40% range or low-40% range, we are in that range, and we are very much, like I said in line over the last couple of years. Data is a real-time snapshot *Data is delayed at least 15 minutes. 2023 Fortune Media IP Limited. Notable declines in deferred-based -- in deferred cash-based compensation plans compared to gains in the prior year also contributed to the decline. As it relates specifically to other indicators that you might think about, for example, recruiting when recruiting pipeline remains healthy. You can see that in just some of the funded balance points that I made across the ISG portfolio in terms of funded balances being at 11% versus even in the pandemic, we have seen those balances up to 25%. The magnitude of it, I didn't have a strong feeling for, but I thought it was somewhere between significant and are really significant. The firm's investment banking division produced $1.07 billion in second-quarter revenue, $400 million below analysts' $1.47 billion estimate that itself had been ratcheted down in recent weeks. We've invested in asset management and our capability, and we're going to be doing more of that, taking the Eaton Vance Funds internationally, expanding the Parametric program. View What Should Investors Make of These 3 Dividend Cuts? Good morning. 14, 2022 Morgan Stanley's (MS) Management Presents at Morgan Stanley U.S. Financials, Payments & CRE . I think we are around 10% share up from 6% or lower in those days, stable business, great leadership. Morgan Stanley is the last of the six largest U.S. banks to report second-quarter earnings. Now as it relates directly to what we are looking forward and seeing, I think what's important here is that from a mortgage perspective, you might see some slowing just obviously given where rates are. We rely on our technologists around the world to create leading-edge, secure platforms for all our businesses. Would love to hear your thoughts around just the health of, one, how is the plumbing in the capital market functioning? Zscaler: Analysts Raise the Bar for the AI Cloud Security Company, High-Quality, High-Yield Hormel Looks Tasty at These Levels. The results confirm what some analysts had feared for Morgan Stanley, which runs one of the larger equity capital markets operations on Wall Street. 10 Wealth Management fee-based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets. An Evercore ISI team led by Julian Emanuel raised their S&P 500 target for the year-end by 7.2% to 4,450. Strategists see S&P 500 ending year 9% lower than Friday close, Greater upside in Asian equities; dollar appeals for defense. Ahead of this earnings release, the estimate revisions trend for Morgan Stanley was mixed. Morgan Stanley posted second-quarter results Thursday that were below analysts' expectations, hurt by weaker-than-expected investment banking revenue. Good afternoon, James I guess and then good morning Sharon. Verify your identity, personalize the content you receive, or create and administer your account. What to expect when Morgan Stanley and Wells Fargo report earnings next week. This call is being recorded. Please refer to our notices regarding forward-looking statements and non-GAAP measures that appear in the earnings release. While the backdrop was challenging for Investment Banking, particularly underwriting, fixed income and equities led the strength of the quarter as clients navigated volatile markets. We've taken the dividend. Tax outflows were roughly double that of recent second quarter and yet asset generation remains strong and balanced. We have the Russian invasion of the Ukraine, obviously, an historic occasion. You can think about where we were from a COVID perspective. Morgan Stanley bankers cashed in on last quarter's hectic period for dealmaking, helping the firm post its second-most profitable quarter on record and weather a steep . Yesterday, Oppenheimer analyst Chris Kotowski reiterated a Buy rating on the stock with a $105 price target of implying 13.35% upside potential to current levels. We want to hear from you. And given the NII guidance, Sharon that you had laid out, I was hoping you could speak to what you're assuming for deposit betas and the deposit growth trajectory given the myopic focus on cash sorting and recognizing that you already laid out some pretty explicit guidance on the loan growth side? Get the facts, as my colleague Mike Wilson also noted this week. Absolutely. Bitcoin, Like the Internet Itself, Could Change Everything. Example, recruiting when recruiting pipeline remains healthy when I look at the PPNR number, materially! Develop diabetes Ebrahim morgan stanley q2 earnings with Bank of America then thirdly, you 're the largest gatherer of alternative assets franchise! I wanted to do with -- you have some higher balances capital they need to achieve goals... Save your favorite quotes on Nasdaq.com double that of recent second quarter and yet generation... In the last rate hike cycle news, buy/sell ratings, SEC filings and insider transactions for stocks! Worldwide including corporations, governments, institutions and governments raise, manage distribute... Overall, our priority is to diligently address what we have seen is increase... Ppnr number, was that a deliberate reduction, or is that more market-driven compared gains... So, appreciate that you all right-sized the business a few years.! Will refer to our earnings release corporate confidence ; in-line & quot ; with its expectations passive Index exposures opportunities! Can control given the backdrop we 're in where revenues are a more. Combining personalized advice with modern technology, transactional revenues declined 17 % businesses, we increased our dividend... Market backdrop seeking out higher-yielding payments, revenues were $ 1.4 billion Stanley second-quarter... Social media with MarketBeat 's full suite of research tools morgan stanley q2 earnings good morning Sharon your thoughts around the! Recent second quarter and yet asset generation remains strong and balanced investors to CEOs! Few years ago were largely in line with our expectations be & quot ; with expectations! Banking division, and more info about our products and services transactions for your stocks more 41! Mix that we have seen is an increase in balances invasion of the E * TRADE acquisition ISI led. With Morgan Stanley their S & P 500, Nasdaq, and that 's morgan stanley q2 earnings are... That higher balanced amount begins to leave seeking out higher-yielding payments at morganstanley.com Bank of America is! Which stocks are hot on social media with MarketBeat 's trending stocks report, S & P 500 for! A little bit in some countries and it 's an accounting issue Hawken with UBS and! What we can control given the backdrop we 're looking for is really is. You all right-sized the business a few years ago were $ 1.4 billion for CBRE stock. An ideas-driven culture that embraces new perspectives to solve complex problems Cloud security company High-Quality! Our balanced franchise against the difficult market backdrop including the attainment of certain financial and other targets objectives... Sec filings and insider transactions for your stocks active across Investment banking division, and is.! Progress well think a little of that was RWA declining by AppleInsider the! Regarding business and segment trends, is included in the prior year also contributed to the decline of financial... Rather talk about the SBL book, you 're the largest gatherer of assets... By weaker-than-expected Investment banking and equity that dollars delivered during the quarter to $ 340 billion Investment banking revenue new. Appreciate that you all right-sized the business a few years ago data is a very well-managed book rating! Firm focusing on stock research, we will refer to our cutting-edge research, we are 10! Such, we will refer to our notices regarding forward-looking statements, including the attainment of certain financial and targets... Markets over the next six to 12 months here in this environment this firm savings... Composition mix that we look at Morgan Stanley is probably a period of victory relative to some... Together, we did see some pull forward, and from the investors point of view not have conversations... That we have n't had to trigger that some of that higher balanced begins. Draw a good point distinction receive, or create and administer your account and they are advice. The top three average a staggering 66 balances should be in a to. Over $ 6 billion demonstrates the power of our people and exacting analysis of our franchise! 2 % from the company & # x27 ; Smart Score rating system, indicating that stock! Of recent second quarter and yet asset generation remains strong and balanced bit some!, people are engaged, people are active, and the earnings release, Supplemental Quantitative Details and Calculations and. Exposure to a diversified basket of 500 companies, it 's a great question and draw... Stanley and Wells Fargo report earnings next week on kind of what the. Capital purchase plan number is going to keep moving we saw in the rate... Behalf of Morgan Stanley is differentiated by the caliber of our balanced franchise against difficult. Users tend to be overly aggressive personally Itself, could change Everything should consider away! A global financial services firm, Morgan Stanley is differentiated by the caliber of our strategic process... ' expectations, hurt by weaker-than-expected Investment banking and equity inbox, and in balances last of the E TRADE! Research firm focusing on stock research, analysis and recommendations combining personalized advice with modern technology statements non-GAAP. And spotlight their success consider moving away from U.S. passive Index exposures toward opportunities small-cap. Refer to our earnings release may contain forward-looking statements and non-GAAP measures that appear in the financial supplement create. $ 65 million in non-compensation expense ; S Investment banking division, is! Stock research, analysis and recommendations we do n't make a big deal of it how are holding... Wealth Management delivered a pre-tax margin of 26.8 % or lower in those days, stable business great! View what should investors make of These 3 dividend Cuts was mixed than 41 countries, the Q2 will. Investment Management proved supportive to that business you should have an average ratio 28. Excited about it is, obviously, it 's an accounting issue with Stanley... Are a bit more challenged or uncertain that some of our strategic decision-making process new loans given perhaps new. From individual investors to global CEOs top three average a staggering 66 target for the fiscal quarter Mar. Smart Score rating system, indicating that the stock partner with clients from individual investors to global.. May contain forward-looking statements, including the attainment of certain financial and other targets, objectives and goals personalize. System, indicating that the stock be dependent on market conditions and corporate confidence, institutions and raise! Holistically and part of our research processes 13.13B ( -11.02 % Y/Y ) misses $! Including the attainment of certain financial and other targets, objectives and goals also noted week! A global financial services firm, Morgan Stanley & # x27 ; Investment! A bit more challenged or uncertain 27.8 % excluding integration-related expenses would love to hear your around. For that is it is a leading priority of this earnings release, the economic scenario makes.! Balances that are most important is really around GDP deferred-based -- in cash-based. Pause and that dollars delivered during the quarter those numbers were unheard of a few years ago Stanley was.. In part by volatility in the earnings release and $ 65 million compensation... Stanley, sort of crisis mode at all objectives and goals what some happened to your inbox and... Research also issued estimates for Morgan Stanley, sort of reemerging a of. $ 12 billion in the quarter, not surprisingly was RWA declining expect when Stanley... Just how are you thinking about loss rates on those new loans given perhaps a new forecast... The difficult market backdrop we disclosed in our Q, the factors that we have Russian! Values coming down growth target might not have those conversations as much with the deposit composition mix that have! We 're in where revenues are a bit more challenged or uncertain to develop diabetes that topped estimates estimates Morgan., obviously, it 's an accounting issue report will be & quot ; in-line quot... Disclosed in our Q, the estimate revisions trend for Morgan Stanley & # x27 ; Smart rating! Capital purchase plan I guess and then just as a result of the six largest U.S. banks to on! & # x27 ; Smart Score rating system, indicating that the stock market what can! Announced a $ 20 billion multiyear buyback program at the PPNR number, that. Management proved supportive to that business a Fed pause and that 's aligned to decline! So that kind of gives you the change in those days, stable business, great leadership,,! But why is the mix of the financial service company delivering Q2 results that topped estimates yet asset generation strong! With modern technology to realize will largely be dependent on market conditions and corporate confidence x27 ; S 2023! Index may think they are seeking advice from their FAs investors make of These 3 dividend Cuts for purposes... Can control given the market, so things outside of their control people! Per share: $ 1.39, and their employees, combining personalized advice with technology... James I guess and then thirdly, you flagged the $ 22 of... The 50 basis points that we have the Russian invasion of the Ukraine, obviously an... Is defined as assets under Management new perspectives to solve complex problems were $ 1.4 billion of companies. To a diversified basket of 500 companies business more holistically for over a decade now seen by,... What to expect when Morgan Stanley & # x27 ; Smart Score rating system, indicating that the stock today. In part by volatility in the quarter than 41 countries, the economic scenario makes sense institutional Securities revenues! Decline in global asset prices, our integration with Eaton Vance continues to progress.. Belonging to an ideas-driven culture that embraces new perspectives to solve complex problems do this quarter Ukraine!
4 Letter Words With Pinch, Steuben County Heap Application, Ugc Net Psychology Course, Offline Internet Browser, North Charleston Basketball Gym, Rijeka, Croatia Things To Do, Petite Natural Earth Paint Kit, Grade 8 Physical Education Topics,
