Banking, finance, and taxes
Morgan Stanley Earnings Ride Trading Revenues
Published:
Last Updated:
Quarterly revenues exclude a debt valuation adjustment (DVA) totaling $119 million, compared with an adjustment of $61 million in the year-ago quarter. The bank also posted a tax benefit of $609 million in the second quarter of last year.
Equity sales and trading net revenues rose from $1.8 billion a year ago to $2.3 billion in the first quarter, and fixed income and commodities sales and trading net revenues rose from $1.0 billion to $1.3 billion.
The bank’s annualized return on average common equity from continuing operations was approximately 9.9% in the most recent quarter, or 9.1% excluding DVA.
Morgan Stanley’s Basel III common equity tier 1 ratio at the end of June was 14% and its tier 1 risk-based capital ratio was about 15.7%. The bank’s tangible book value per common share at the end of the quarter was $29.54, based on approximately 2 billion shares outstanding.
The bank repurchased approximately $625 million of its common stock, or approximately 16 million shares, in the second quarter.
The bank did not provide guidance in its earnings release. The consensus estimate for third-quarter adjusted EPS is $0.72 on revenues of $8.83 billion. For the full year, the consensus calls for EPS of $2.99 on revenues of $36.76 billion.
ALSO READ: Book Value Discounts Make Citi and BofA Outshine JPMorgan and Wells Fargo
The bank’s CEO said:
We delivered a strong quarter across each of our businesses, through client-focused execution, expense discipline and prudent risk management. We remain focused on delivering the long-term value of this franchise.
Shares traded up about 2% in the premarket Monday to $41.02. The current 52-week trading range is $31.12 to $40.26. Thomson Reuters had a consensus analyst price target of $40.67 before the results were announced.
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.