Mon, Oct. 19, 9:48 AM
- "We've said what we want to say about this," says a becoming-irritated Morgan Stanley (MS -5.7%) CEO James Gorman, taking yet another earnings call question about the bank's lame trading revenue results in Q3. "It is what it is."
- Morgan earlier reported a 41% Y/Y decline in FICC revenue, helping the bank to a big earnings miss. Goldman Sachs, by comparison, posted a 33% decline, and while a sizable gain in equities trading revenue helped offset at Goldman, Morgan Stanley reported a flat result there.
- It's been Morgan Stanley's strategy to lean on wealth management as a source of stability, and that unit produced income of $824M vs. $800M a year earlier (though revenue slipped $200M to $3.6B).
- Webcast and financial supplement
- Previously: Morgan Stanley tumbles premarket after big earnings miss (Oct. 19)
- Previously: Morgan Stanley misses by $0.29, misses on revenue (Oct. 19)
Mon, Oct. 19, 9:13 AM
Mon, Oct. 19, 7:24 AM
- Excluding DVA, net income of $740M or $0.34 per share compared to $1.3B and $0.64 one year ago. Revenue of $7.3B dropped from $8.7B. Both numbers missed consensus by a mile. Annualized ROE of 3.9%.
- Institutional Securities pretax income of $688M vs. $1.2B a year ago. Advisory levels rose - to $557M from $392M, but FICC revenue plunged to $583M from $997M.
- Wealth Management pretax income of $824M vs. $800M a year ago, with net revenue of $3.6B slipping from $3.8B. Pretax margin of 23%.
- Investment Management pretax loss of $38M vs. a profit of $193M a year ago, mostly thanks to a reversal of previously accused carried interest associated with Asia P-E business.
- Total compensation expense of $3.4B falls from $4.2B a year ago.
- Fully phased-in CET 1 ratio of 12.4%. Tangible book value per share of $29.99 vs. Friday's close of $33.94.
- Conference call at 8:30 ET
- Previously: Morgan Stanley misses by $0.29, misses on revenue (Oct. 19)
- MS -5.7% premarket
Wed, Oct. 7, 9:30 AM
- It's all about growth in the wealth management business, says RBC Capital's Fiona Swaffield, upgrading Morgan Stanley (NYSE:MS) to Outperform. Her $39 price target is 20% above last night's close.
- The key revenue driver for wealth management has been net interest income, and there's room for plenty more given the bank's ample funding to support loan growth, and its low loan to deposit ratio.
- Morgan Stanley is targeting $200B in deposits vs. the current $132B, and the penetration of mortgages in its client base to 5% from 2%.
- There's also the chance of higher interest rates, and Swaffield sees a 100 basis points increase boosting pretax earnings by $750M - a benefit, but hardly game-changing as the bank can probably be expected to earn somewhere in the area of $11B over the next year.
- Shares +1.9%
Mon, Sep. 28, 2:48 PM
- It isn't just Glencore (OTCPK:GLCNF, OTCPK:GLNCY) who is tanking, as at least one measure of raw materials producers plunges to seven-year lows following the company's woes and data that showed weakening Chinese industrial profits.
- Shares of Glencore plunged 29% to close at just 69 pence, an all-time low, exaggerated by a damning report that said future earnings are so uncertain that the company may need to direct all of its efforts to repay debt.
- Freeport McMoRan (FCX -10.2%) is hit hard after breaking below support at $10/share, and global mining peers Rio Tinto (RIO -4.1%), BHP Billiton (BHP -4.5%) and Vale (VALE -9.4%) also are smacked down.
- A number of other firms also are in situations not that much different from Glencore, says DTN analyst Darin Newsom, noting that Caterpillar (CAT -2.2%) and Deere (DE -1.6%) have been struggling and adding that pressure on Glencore may “create a vacuum those other struggling companies could get sucked into."
- Along with oil and gas producers and precious metals miners, even financial stocks are affected, with Morgan Stanley (MS -3.6%) and Goldman Sachs (GS -3.4%) underperforming their banking peers, perhaps as investors grow nervous about the potential for any of Glencore's problems possibly blowing back on other commodity trading operations.
Fri, Jul. 31, 7:52 AM
- According to Reuters, the value of merger and acquisition deals through July 30 was $436.4B, including 14 deals worth over $5B apiece. Although down from June's torrid pace of $546.8B, it still ranks as the seventh busiest month on record. Leading the pack was Teva's $40.5B purchase of Allergan's generic drugs business.
- The top investment bank in terms of the total value of transactions was Goldman Sachs (NYSE:GS), involved in 35 deals worth $148.8B, including half of the top ten. JP Morgan (NYSE:JPM) was second with 30 deals worth $116.1B while Morgan Stanley (NYSE:MS) was third with 33 deals valued at $95.9B.
- Global M&A so far this year is $2.64T, up 41% from last year. The action in the U.S. is up 66%.
- Energy and healthcare are the leading sectors. There have been 1,557 deals in energy worth $407B. Healthcare is close behind with 1,577 deals worth $395B.
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Mon, Jul. 20, 7:16 AM
- Q2 net income (excl. DVA) of $1.7B or $0.79 per share vs. $1.2B and $0.58 one year ago. ROE (excl. DVA) of 9.1%.
- Institutional Securities pre-tax income of $1.44B on revenue of $4.99B vs. $873M and $4.161B a year ago. Advisory revenue of $423M, equity underwriting revenue of $489M and fixed income underwriting revenue of $528M all roughly flat Y/Y. Equity sales and trading revenue of $2.3B vs. $1.8B a year ago. FICC revenue of $1.3B up from $1B - this as most other banks saw Y/Y decline.
- Wealth Management pre-tax income of $885M on revenue of $3.875B vs. $763M and $3.702B a year ago. Asset management fee revenue of $2.2B vs. $2.1B. Transactional revenue of $8872M vs. $991M. Net interest income of $737M vs. $577M. Total client assets of $2T. Client assets in fee-based accounts of $813B up 7% Y/Y. Average annualized revenue per representative of $978K up 8% Y/Y.
- Investment Management pre-tax income of $220M on revenue of $751M vs. $209M and $705M a year ago.
- CET 1 ratio of 12.5%. Tangible book value per share of $29.54.
- Conference call at 8:30 ET
- Previously: Morgan Stanley beats by $0.05, beats on revenue (July 20)
- MS +3.8% premarket
Wed, Jun. 3, 11:01 AM
- For regulatory reasons (pressure to counter money laundering), Morgan Stanley (MS +1.6%) recently shifted coverage of Caribbean and Latin American clients out of wealth management and into its institutional business, according to the company.
- As a result, Morgan's The Americas Group, led by Don d'Adesky, moved its practice and $2.4B in client assets to Raymond James (RJF +2%). While brokerages typically go to the mattresses to retain such business, a Morgan spokeswoman simply said the bank was no longer able to accommodate the team's business model.
- Raymond James pronounces itself "very comfortable with the team's business model."
- Source: WSJ
Mon, Apr. 20, 11:10 AM
- While Evercore ISI's Glenn Schorr calls Morgan Stanley's (MS +1.2%) Q1 results a "Bo Derek" - otherwise known as a "10" - JMP's Devin Ryan is somewhat more measured.
- After stripping out a sizable tax benefit, "core" EPS still beat estimates, but not by nearly as gaudy an amount as the headlines suggest. The outperformance - however - was driven by FICC action, and one wonders how sustainable that is. Wealth Management revenues, on the other hand, were 3% less than what Ryan had modeled.
- "We suspect investors will initially view results favorably, but given the trading-heavy outperformance, we believe the focus will also be on sustainability, which could temper the upside."
- Speaking on the earnings call, Google-bound CFO Ruth Porat - applauding some of the regulatory measures aimed at banks since the crisis - calls for a "time out" to "pause, digest, and assess" what's working and what's not.
- Previously: Morgan Stanley +2% after strong Q1. (April 20)
Mon, Apr. 20, 7:47 AM
- Q1 income from continuing operations (excluding DVA) of $2.3B or $1.14 per share vs. $1.4B and $0.70 one year ago. Company realized a net tax benefit of $564M or $0.29 per share thanks to repatriation of non-U.S. earnings at a lower than expected rate, so the earnings beat was closer to $0.07. Annualized ROE of 10.1%.
- Institutional Securities pre-tax income (excl. DVA) of $1.688B on revenue of $5.333B vs. $1.290B and $4.551B a year ago. FICC revenue of $1.9B vs. $1.7B. Advisory revenue of $471M vs. $336M. Equity sales and trading revenue of $2.3B vs. $1.7B.
- Wealth Management pre-tax income of $855M vs. $686M a year ago on revenue of $3.834B vs. $3.609B. Pre-tax margin of 22%.
- Investment Management pre-tax income of $187M vs. $268M a year ago.
- CET1 ratio of 13.7%. Tangible book value per share of $28.91.
- Firm repurchased about $250M of stock during quarter, or roughly 7M shares.
- Previously: Morgan Stanley beats by $0.36, beats on revenue (April 20)
- MS +2% premarket
Tue, Apr. 14, 3:40 PM
- Fast action at JPMorgan's trading and investment banking businesses helped the bank to consensus-beating Q1 results.
- The Corporate & Investment bank posted revenue of $9.58B in Q1, up 8% from a year ago and up 30% from Q4. Trading revenue of $5.67B gained 9% Y/Y, with a 4.5% rise in bond-trading revenue and a 22% increase in equity-trading revenue. M&A advisory revenue got off to its best start ever, up 42% from a year ago and 25% from Q4.
- Goldman Sachs (GS +1.1%) reports on Thursday and Morgan Stanley (MS +1.4%) on Monday.
- Previously: JPMorgan earnings call: Optimism on FICC (April 14)
- Previously: "Robust" activity in FICC leads strong quarter at JPMorgan (April 14)
Tue, Mar. 17, 11:10 AM
- A possible harbinger of things to come next month when the big banks report Q1 earnings, profits at Jefferies plunged in FQ1 (ended Feb. 28), with FICC, capital markets, and investment banking particularly weak.
- Previously: Poor results at Jefferies sinks Leucadia (March 17)
- Jefferies parent Leucadia is lower by 3.7%. Goldman Sachs (GS -1.1%), Morgan Stanley (MS -0.9%), JPMorgan (JPM -1.2%), Citigroup (C -0.1%), Bank of America (BAC -0.8%).
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Thu, Mar. 12, 12:47 PM
- Citigroup's (C +2.7%) $7.8B in buybacks was 10% higher than estimated by MKM analyst David Trone. Combined with the nickel dividend, that's total shareholder returns of $8.4B vs. his $7B expectation.
- Bank of America (BAC -1%) - though given just conditional approval - is set for $4B in buybacks and a nickel dividend. That's a total return of $6.1B vs. Trone's $3.1B estimate. Trone notes the bank can proceed with its buyback prior to resubmitting plans.
- JPMorgan's (JPM +1%) $6.4B buyback was shy of Trone's $7B estimate, but the 10% dividend increase was better than forecast. The total capital return of $12.9B vs. his $13.2B forecast is a "marginal negative."
- The dividend hike to $0.65 at Goldman (GS +2.1%) beat Trone's expectation of $0.62. As for the buyback, Goldman's policy of not disclosing the amount remains in place.
- Morgan Stanley's (MS +4.5%) capital return of $4.3B is more than double Trone's $1.9B estimate.
- Source: Benzinga
Thu, Mar. 12, 8:07 AM
- Citi's (NYSE:C) quarterly dividend of $0.05 and $7.8B in buybacks were somewhat better than expected, and Regions Financial's (NYSE:RF) buybacks of $875M was higher than the $625M estimate (Regions also boosted its dividend by 20%).
- KeyCorp (NYSE:KEY), Morgan Stanley (NYSE:MS), and SunTrust (NYSE:STI) were also winners after announcing larger-than-forecast buybacks.
- Bank of America (NYSE:BAC) is a "slight disappointment," but some investors had feared an outright rejection of the capital plan, so maybe the resubmission request isn't the worst outcome.
- Previously: Corbat likely keeping his job as Citi cruises through CCAR (March 11)
- Previously: Regions Financial boosts payout by 20% after CCAR approval (March 11)
- Previously: KeyCorp declares $0.075 dividend (March 11)
- Previously: Morgan Stanley intends to declare $0.15 dividend (March 11)
- Previously: SunTrust Banks declares $0.24 dividend (March 11)
- C +3.4%, RF +3.8%, KEY +1.7%, MS +2.7%, STI +2.1%, BAC +0.6% premarket
Wed, Mar. 11, 5:36 PM
Wed, Mar. 11, 4:44 PM
- Goldman's Sachs' (NYSE:GS) first score of 5.8% was only marginally ahead of the 5% threshold, but the resubmitted capital plan came in at 6.4%
- Morgan Stanley (NYSE:MS) was 5.9% on both tests, so one wonders what changed. The company has announced a $3.1B buyback through the end of 2016 Q2 as well as a boost in the quarterly dividend to $0.15 per share from $0.10.
- JPMorgan (NYSE:JPM) lifted its score from a barely scraping by 5% to 5.5%.
- There's no word yet on the details of Goldman's or JPMorgan's plans.
- GS +0.9%, MS +1.8%, JPM +0.1% after hours.
- Previously: BofA must resubmit capital plan; Deutsche and Santander rejected (March 11)
- CCAR results
Morgan Stanley through its subsidiaries and affiliates, provides financial products and services to a diversified group of clients and customers, including corporations, governments, financial institutions and individuals.
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