MS Stock (NYSE:MS)
MS stock prices slide on Friday, trading at $75.03 as of 02:16 PM EDT.
According to figures released on Friday, Morgan Stanley's (NYSE:MS) Q3 earnings rose from Q2 and surpassed the average analyst estimate as the bank's non-compensation costs decreased. Although revenue did not meet forecasts, investment banking and investing activity were slowed down by unstable markets. In premarket trading, MS stock (NYSE:MS) fell 0.6%.
Chairman and CEO James Gorman noted that while Investment Banking and Investment Management were affected by the market environment, Fixed Income and Equity successfully weathered difficult markets. As we repurchase $2.6 billion worth of shares and pay out a generous dividend, we continue to preserve our excellent capital position.
A Q3 adjusted EPS of $1.53, above the $1.51 average, represents an increase from $1.44 in Q2 and a decrease from $2.04 in Q3 2021. Net revenue dropped from $13.1 billion in Q2 and from $14.8 billion in Q3 2021, coming in at $13.0 billion, below the average analyst forecast of $13.3 billion. Return on tangible equity was 14.6%, up from 13.8% in the second quarter and 19.6% in the prior quarter.
The $2.51 billion in net interest income for the third quarter increased by 22% year over year and 10% quarter over quarter. Q3 total non-interest revenue of $10.5 billion decreased by 3% from the previous quarter and by 17% from the same period last year.
Revenue Performance
- $1.37 billion, up 19% from quarter to quarter and down 54 percent from year to year, in investment banking;
- $3.33 billion, down 7% from quarter to quarter and up 16% from year to year; in trading.
- Investments: -$168 million, down from $23 million in the second quarter and $45 million at the same time last year.
- Commissions and fees of $1.13 billion, down from 7.7% Q/Q to 11% Y/Y. Asset management: $4.74 billion, a decrease from 3.3% Q/Q to 9% year on year.
Credit losses were set aside for $35 million, compared to $101 million in the previous quarter and $24 million the year before. Payroll costs were $5.61 billion, compared to $5.55 billion in the second quarter and $5.92 billion in the third quarter of 2021. Compared to $4.16 billion in the second quarter and $3.94 billion in the third, non-compensation expenses totaled $3.95 billion in 2021. In the previous period, Morgan Stanley (NYSE:MS) missed non-GAAP EPS of $1.53 by $0.02 and sales of $12.99 billion by $320 million.
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