Morgan Stanley third quarter 2021 earnings results
By Divya on Oct 14, 2021 | 04:34 AM IST
Picture credit: Fortune
Morgan Stanley Reports Net Revenues of $14.8 Billion, EPS of $1.98 and ROTCE of 19.6%
NEW YORK, October 14, 2021 – Morgan Stanley (NYSE: MS) today reported net revenues of $14.8 billion for the third quarter ended September 30, 2021 compared with $11.7 billion a year ago. Net income applicable to Morgan Stanley was $3.7 billion, or $1.98 per diluted share,1 compared with net income of $2.7 billion, or $1.66 per diluted share,1 for the same period a year ago. The comparisons of current year results to prior periods were impacted by the acquisitions of E*TRADE Financial Corporation (“E*TRADE”), reported in the Wealth Management segment, and Eaton Vance Corp. (EV)(“Eaton Vance”), reported in the Investment Management segment.
Highlights
Firm net revenues of $14.8 billion and net income of $3.7 billion increased more than 25% year over year reflecting strong performance across all business segments and regions.
• The Firm delivered ROTCE of 19.6% or 20.2% excluding the impact of integration-related expenses.5,6
• The Firm expense efficiency ratio improved to 67% or 66% excluding the impact of integration-related expenses.6,7
• Common Equity Tier 1 capital standardized ratio was 16.0%.
• Institutional Securities net revenues of $7.5 billion reflect record Investment Banking revenues, led by advisory, continued strong performance in Equity, and solid results in Fixed Income.
• Wealth Management delivered a pre-tax margin of 25.8% or 27.7% excluding integration-related expenses.6,8 Results reflect record asset management revenues and continued growth in bank lending. The business added record net new assets of $135 billion9 representing a year-to-date 10% annualized growth rate from beginning period assets.
Investment Management results reflect an increase in fee-based asset management revenues on AUM of $1.5 trillion.