Morgan Stanley outperforms revenue estimates but net income declines

Investing.com | Editor Emilio Ghigini

Published Jan 17, 2024 03:23AM ET

NEW YORK - Morgan Stanley has released its fourth-quarter earnings, demonstrating a revenue surge to $12.9B, which surpassed the anticipated forecast of $12.7 billion. However, the firm's net income experienced a downturn, settling at $1.5B. Earnings per share (EPS) also saw a decrease to 85 cents, falling short of the expected $1.01. This downturn was impacted by notable expenses, including a Federal Deposit Insurance Corporation (FDIC) assessment of $286 million and legal settlement costs amounting to $249 million from regulatory probes into trade disclosures.Despite the mixed financial results, Morgan Stanley's stock showed resilience in premarket trading today, with shares climbing as much as 2%. The bank's investment banking segment particularly stood out, reporting a revenue boost largely driven by fixed income underwriting activities.Under the leadership of new CEO Ted Pick, who took the helm in January, the investment bank has been keen to emphasize its strong return on tangible common equity (ROTCE) performance amidst past market volatility. This focus remains even as Morgan Stanley's shares have seen a nearly 4% decline since the start of the year. The firm remains committed to upholding its strategic fiscal objectives for the benefit of its investors.This comes after a successful previous year where shares increased by 10%, contrasting with the early dip this year. Despite these challenges, the firm remains optimistic about its future financial performance.

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Written By: Investing.com

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