Morgan Stanley Q4 Profit Tops Estimates

(RTTNews) - Morgan Stanley (MS) reported that, excluding integration-related expenses, earnings per share in the fourth quarter was $1.31 compared to $2.08, a year ago. The company noted that its fourth quarter was also impacted by severance costs of $133 million associated with a December employee action, partially offset by a net discrete tax benefit of $89 million. Analysts on average had expected the company to earn $1.19 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Net income applicable to Morgan Stanley was $2.2 billion, or $1.26 per share, compared with $3.7 billion, or $2.01 per share, last year.

Net revenues were $12.7 billion compared to $14.5 billion, previous year. Analysts on average had estimated $12.64 billion in revenue. Institutional Securities reported net revenues of $4.8 billion compared with $6.7 billion a year ago. Investment Banking revenues declined 49% from a year ago.

Excluding integration-related expenses, full year earnings per share was $6.36 compared to $8.22 in the prior year. Net income applicable to Morgan Stanley was $11.0 billion, or $6.15 per share, compared with $15.0 billion, or $8.03 per share. Net revenues were $53.7 billion compared with $59.8 billion in the prior year.

Morgan Stanley delivered full year ROTCE of 15.3%, or 15.7% excluding the impact of integration-related expenses.

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