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
Tue, Jan. 20, 7:34 AM
- Excluding DVA, Q4 income from continuing operations of $903M or $0.40 per share vs. $336M and $0.15 one year ago.
- Institutional Securities net revenue excluding DVA of $3.2B vs. $3.7B one year ago, with pretax loss of $1.08B vs. pretax loss of $880M one year ago. Advisory revenues of $488M vs. $451M, thanks to boosted M&A activity. Equity sales and trading revenue of $1.6B vs. $1.5B. FICC revenue (excl.DVA) of $599M vs. $694M (-13.7%).
- Wealth Management revenue of $3.8B vs. $3.7B one year ago, and pretax income of $736M vs. $715M. Asset management fee revenue of $2.1B vs. $2B. Transactional revenues of $976M vs. $1.1B. Net interest income of $625M vs. $526M. Compensation expense of $2.3B vs. $2.1B. Total client assets more than $2T at year's end, with those in fee-based accounts of $785B up 13%. WM reps of $16,076 slips from $16,456.
- Investment Management revenue of $588M vs. $858M one year ago, with pretax loss of $6M vs. profit of $331M.
- Previously: Morgan Stanley misses by $0.08, misses on revenue (Jan. 20)
- MS -2% premarket
Mon, Jan. 5, 11:13 AM
- A now former Morgan Stanley (MS -3.2%) employee stole partial client data on up to 10% of all Wealth Management clients, and certain account information of roughly 900 clients - including account names and numbers - was briefly posted on the Internet. The stolen data does not include passwords or social security numbers.
- The exposure was quickly detected by Morgan, and removed.
- Source: Press Release
Dec. 9, 2014, 8:52 AM
- A check of the other major banks premarket amid a global selloff of some note and BofA's Brian Moynihan's warning about sluggish Q4 trading revenue finds JPMorgan (NYSE:JPM) -1.5%, Citigroup (NYSE:C) -1.5%, Wells Fargo (NYSE:WFC) -1.2%, Goldman Sachs (NYSE:GS) -1.7%, and Morgan Stanley (NYSE:MS) -1.5%.
- XLF -1.1%
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Oct. 17, 2014, 3:03 PM
- "We view this as a great quarter, which demonstrates good progress on both production and efficiency. We continue to like Morgan Stanley (MS +1.8%) and its peers, and believe the recent pullback represents an attractive buying opportunity. We expect a good Q4 follow-through, and believe CCAR capital returns will be increased in the next couple of cycles as excess capital builds," says MKM's David Trone.
- "The beat was entirely driven by the top-line which came in $0.15 higher due to better than expected investment banking, FICC, and equities," says Citi's Keith Horowitz and Chris Larmoyeux. The beat despite the high bar for capital markets names, he says, bodes well for the stock, particularly given the recent sizable selloff.
- Previously: Morgan Stanley higher after earnings beat
Oct. 17, 2014, 7:30 AM
- Q3 income from continuing operations (excluding DVA) of $1.6B of $0.77 per share vs. $1B and $0.50 one year ago. This year's Q boosted by net discrete tax benefit of $237M or $0.12 per share.
- Institutional Securities pre-tax income from continuing operations of $1.2B vs. $396M a year ago. Advisory revenue of $392M vs. $275M thanks to boosted M&A activity. Equity underwriting revenue of $464M vs. $236M thanks to boosted IPO activity. FICC net revenue of $997M vs. $835M (about inline with what a few other banks posted). Compensation expense of $1.8B vs. $1.6B.
- Wealth Management pre-tax income of $836M vs. $668M a year ago, on net revenue of $3.8B vs. $3.5B. Asset management fees of $2.2B vs. $1.9B. Net interest income of $601M vs. $493M thanks to higher deposits and loan balances. Compensation expense of $2.2B vs. $2B. Wealth managers of 16,162 fell from 16,517, with average annualized revenue per advisor of $932K up 10%.
- Investment Management pre-tax income of $188M vs. $300M a year ago.
- Tangible book value per share of $29.25. Roughly $195M of stock repurchased during Q, or 5.9M shares.
- MS +2.8% premarket
- Previously: Morgan Stanley beats by $0.23, beats on revenue
MS vs. ETF Alternatives
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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