Morgan Stanley Reports Third Quarter 2014:
- Net Revenues of $8.9 Billion and Earnings per Diluted Share from Continuing Operations of $0.84
- Excluding DVA, Net Revenues were $8.7 Billion and Earnings per Diluted Share from Continuing Operations of $0.77
- Strong Performance in Wealth Management with Pre-Tax Margin of 22%; Record Revenue per Financial Advisor
- Investment Banking Ranked #1 in Global IPOs and #2 in Global Announced M&A; Continued Strength in Equity Sales & Trading
NEW YORK, October 17, 2014 – Morgan Stanley (NYSE: MS) today reported net revenues of $8.9 billion for the third quarter ended September 30, 2014 compared with $8.0 billion a year ago. For the current quarter, income from continuing operations applicable to Morgan Stanley was $1.7 billion, or $0.84 per diluted share, compared with income of $889 million, or $0.44 per diluted share, for the same period a year ago. The current quarter included a net discrete tax benefit of $237 million or $0.12 per diluted share.
Results for the current quarter included positive revenues related to the change in the fair value of certain of the Firm’s long-term and short-term borrowings resulting from the fluctuation in the Firm’s credit spreads and other credit factors (Debt Valuation Adjustment, DVA) of $215 million, compared with negative revenues of $171 million a year ago.
Excluding DVA, net revenues for the current quarter were $8.7 billion compared with $8.1 billion a year ago. Income from continuing operations applicable to Morgan Stanley was $1.6 billion, or $0.77 per diluted share, compared with income of $1.0 billion, or $0.50 per diluted share, a year ago.
Compensation expense of $4.2 billion increased from $4.0 billion a year ago primarily driven by higher revenues. Non-compensation expenses of $2.4 billion decreased from $2.6 billion a year ago primarily reflecting lower
litigation costs.
For the current quarter, net income applicable to Morgan Stanley, including discontinued operations, was $1.7 billion or $0.84 per diluted share, compared with net income of $906 million or $0.45 per diluted share in the third quarter of 2013.
