Quarterly revenues exclude a debt valuation adjustment (DVA) of $125 million, compared with an adjustment of $126 million in the year-ago quarter.
Equity sales and trading net revenues rose from $1.7 billion a year ago to $2.3 billion in the first quarter, and fixed income and commodities sales and trading net revenues rose from $1.7 billion to $1.9 billion.
Morgan Stanley increased its quarterly dividend from $0.10 a share to $0.15, payable on May 15 to common shareholders of record on April 30.
The bank’s annualized return on average common equity from continuing operations was 14.2% in the most recent quarter, or 10.1% excluding DVA and a net discrete tax benefit $0.29 per share primarily related to the repatriation of non-U.S. earnings at a lower cost than originally estimated.
Morgan Stanley’s Basel III common equity tier 1 ratio at the end of March was about 13.1%, and its tier 1 risk-based capital ratio was about 14.7%. The bank’s tangible book value per common share at the end of the quarter was $28.91, based on approximately 2 billion shares outstanding.
The bank repurchased approximately $250 million of its common stock, or approximately 7 million shares in the first quarter, and announced a share repurchase of up to $3.1 billion of common stock beginning in the second quarter of 2015 through the end of second quarter 2016.
The bank did not provide guidance in its earnings release. The consensus estimate for second-quarter adjusted EPS is $0.74 on revenues of $9.03 billion. For the full year, the consensus calls for EPS of $2.89 on revenues of $37.96 billion.
The bank’s CEO said:
This was our strongest quarter in many years with improved performance across most areas of the firm. It reflects our ongoing strategy to build platforms for growth while maintaining a prudent risk profile and disciplined expense management.
Shares traded up about 2.5% in the premarket Monday morning to $37.68. The current 52-week range is $29.02 to $39.19. Thomson Reuters had a consensus analyst price target of around $39.00 before the results were announced.
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