Morgan Stanley Earnings Hit by Charges, $286m FIDC and $249m SEC Criminal Investigation

Morgan Stanley reported mixed fourth quarter earnings and revenue before the bell Tuesday. Net income came to $1.52 billion, or 85 cents per share, down more than 30% from $2.24 billion, or $1.26 per share, a year ago. Revenue of $12.9 billion topped analysts’ estimates and rose from $12.75 billion a year ago. This is the first earnings report under new CEO Ted Pick. MS was hit by two one-time regulatory charges, a $286 million charge related to a Federal … Continue reading “Morgan Stanley Earnings Hit by Charges, $286m FIDC and $249m SEC Criminal Investigation”

Morgan Stanley Stock Falls 8% to 52 Week Low After Key Earnings Metrics Miss

Morgan Stanley reported better than expected third quarter earnings and revenue before the bell Tuesday. However in comparison to its peers and metrics such as net interest income falling short of forecasts the stock was sold off. The bank’s investment-banking revenue was weaker than forecasts, again an area where it’s competitors had found some recovery in this quarter. Morgan Stanley’s stock was down almost 8% in morning trading, which is on track for its largest one-day percentage drop since June … Continue reading “Morgan Stanley Stock Falls 8% to 52 Week Low After Key Earnings Metrics Miss”

Morgan Stanley Profit Hit by Lower Trading Revenue

Morgan Stanley reported better than expected second quarter earnings before the bell Tuesday despite much lower-than-expected revenue from trading. MS posted a profit of $2.18 billion, or $1.24 a share. That beat the $1.15 a share expected by analysts, according to estimates compiled by FactSet. Revenue increased 2% to about $13.5 billion, beating expectations of $13.02 billion. Shares rose 5% just after the market open despite concerns about the economy and future deals. Morgan Stanley’s trading revenue fell 22% from … Continue reading “Morgan Stanley Profit Hit by Lower Trading Revenue”

Big Banks Kick Off Second Quarter Earnings Season with Citigroup, JPMorgan, State Street and Wells Fargo

America’s big money center banks kick of second quarter earnings next week. Core commercial and consumer banking franchises are expected to show improved profitability. However, there is continued weakness in investment banking and concerns are rising over the banking sector’s exposure to commercial real estate, asset quality is being scrutinized in earnings. Signs of asset quality deterioration are a risk. JPMorgan Chase (JPM), Citigroup (C), BlackRock (BLK), State Street (SST) and Wells Fargo (WFC) reporting Q2 results on Friday July … Continue reading “Big Banks Kick Off Second Quarter Earnings Season with Citigroup, JPMorgan, State Street and Wells Fargo”

The Beat Goes On; America’s 23 Biggest Banks Pass Federal Reserve Stress Tests

The Federal Reserve on Wednesday announced the 23 largest US lenders had passed the Central Banks Stress Tests. The banks showed they can withstand a severe global recession and turmoil in real estate markets. The Fed released the hypothetical scenarios for its annual bank stress tests back in March before the New York and California regional bank turmoil. The 23 banks were tested against a severe global recession with heightened stress in both commercial and residential real estate markets, as … Continue reading “The Beat Goes On; America’s 23 Biggest Banks Pass Federal Reserve Stress Tests”

Morgan Stanley Calls U.S. Stock Market Rally a FOMO Head Fake

US Bank Morgan Stanley’s Monday note to clients called the recent rally on the equity market a head fake and driven by the fear of people missing out (FOMO). Many pundits have been shocked by the rise in stock markets in the U.S. given the U.S. bank crisis that saw three of the four largest bank collapses in history this year, the U.S. debt ceiling crisis and Yellen imposed X date on June 1 for a default by the U.S. … Continue reading “Morgan Stanley Calls U.S. Stock Market Rally a FOMO Head Fake”

Morgan Stanley Wealth Management Revenue Rose 11% While Investment Banking Revenue Fell 24%

Morgan Stanley reported better than expected first quarter earnings before the bell Wednesday despite much lower-than-expected revenue from investment banking. MS posted a profit of $2.98 billion, or $1.70 a share ahead of $1.63 a share estimates. Revenue declined 2% to $14.52 billion in the quarter but beat expectations of $13.97 billion. Shares however fell 3% in premarket trading with concerns about the economy and future deals. Investment banking revenue, including fees from mergers and acquisitions, fell 24% from a … Continue reading “Morgan Stanley Wealth Management Revenue Rose 11% While Investment Banking Revenue Fell 24%”

Big Banks Kick Off First Quarter Earnings Season with Citigroup, JPMorgan, PNC and Wells Fargo

America’s big money center banks kick of first quarter earnings next week. There will be extra attention on them with the recent banking turmoil. Guidance will be keenly watched for from the money center banks. Concerns are rising over the banking sector’s exposure to commercial real estate. JPMorgan Chase (JPM), Citigroup (C), PNC Financial Services Group, Inc. (PNC) and Wells Fargo (WFC) reporting Q1 results on Friday. We got a preview from JPMorgan CEO Dimon saying that banking system is … Continue reading “Big Banks Kick Off First Quarter Earnings Season with Citigroup, JPMorgan, PNC and Wells Fargo”

Federal Reserve Hypotheticals For 2023 Bank Stress Tests have Unemployment at 10%

The Federal Reserve on Thursday released the hypothetical scenarios for its annual bank stress tests. This year, 23 banks will be tested against a severe global recession with heightened stress in both commercial and residential real estate markets, as well as in corporate debt markets. Last year the Fed found all 34 large banks tested remained well above their risk-based minimum capital requirements, and the Fed announced no restrictions relating to dividends and buybacks. These test results will be keenly … Continue reading “Federal Reserve Hypotheticals For 2023 Bank Stress Tests have Unemployment at 10%”

Morgan Stanley Wealth Management Counterbalance to Investment Banking Fall

Morgan Stanley reported better than expected fourth quarter earnings before the bell Tuesday despite much lower-than-expected revenue from investment banking. MS received record revenues in wealth management business, which includes online trading platform ETrade, were up 6% to more than $6.6bn. MS’s investment-banking group revenues, which now houses Eaton Vance, dropped 17% to $1.5bn but topped analyst estimates of $1.3bn. Morgan Stanley shares, rose 2.92% to $77.00 premarket. The bank set aside $87 million for credit losses, compared with just … Continue reading “Morgan Stanley Wealth Management Counterbalance to Investment Banking Fall”