Morgan Stanley's first-quarter results exceeded expectations, thanks to the generally better-than-expected revenues in major divisions.
Before the U.S. stock market on Tuesday, April 16, Morgan Stanley (MS) announced its results for the first quarter ended March 31. According to the financial report, Morgan Stanley's first-quarter revenue was $15.14 billion, exceeding expectations of $14.46 billion, a year-on-year increase of 4%, and net profit in the first quarter increased by 14% year-on-year to $3.41 billion, or $2.02 per share, exceeding analysts' expectations of $1.67 per share.
In addition, Morgan Stanley also said it would pay a quarterly dividend of $0.85 per share.
CEO Ted Pick praised the company's outstanding performance, attributing this achievement to the significant growth in client assets in the Wealth and Investment Management business, which now has $7 trillion in assets under management.
After the release of the earnings report, Morgan Stanley's stock price rose to 4% in pre-market trading, and rose more than 2% after the open.
The revenue of major departments increased by 16% in investment banking business
Specifically, Morgan Stanley's revenue in the first quarter of the institutional securities division increased by 16% year-on-year to US$7.016 billion, the revenue of the wealth management department reached US$6.88 billion, an increase of 5% from last year, and the revenue of the investment management department increased by 6% year-on-year to US$1.377 billion.
FICC (fixed income, foreign exchange and commodities) sales and trading revenue was $2.49 billion, beating expectations of $2.33 billion, while investment banking revenue surged 16% year-over-year, with equity net income up 4% and fixed income net income up 4% year-on-year. Net interest income declined due to changes in the structure of deposits.
The report said the increase in equity income was mainly due to "solid growth across business lines and geographies, as well as the strength of derivatives in a constructive market context," while the decline in fixed income was mainly due to lower macroeconomic activity and credit customer activity, although the report said that higher income from commodities partially offset the impact.
In addition, Morgan Stanley also achieved a return on tangible common equity (ROTCE) of 19.7% in the first quarter, driving the company's asset management revenue to a record high, with CEO Ted Pick saying in the earnings report:
"The firm's client assets in wealth and investment management have reached $7 trillion due to strong net new asset growth. Institutional securities are also seeing the strength of the market and underwriting business as a whole. Morgan Stanley's integrated corporate model is showing lasting impact. ”
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