Morgan Stanley Reports Higher Revenue
January 18 2018 - 7:36AM
Dow Jones News
By Liz Hoffman
Morgan Stanley said its fourth-quarter profit rose, excluding
the impact from the new tax law, as its giant wealth-management
business continues to churn out reliable profits.
Morgan Stanley, the last of the big Wall Street firms to give
its quarterly numbers, reported net income of $686 million, or 29
cents a share. Revenue rose to $9.5 billion from $9.02 billion in
the year-ago quarter.
Excluding a tax provision of nearly $1 billion, Morgan Stanley
earned $1.7 billion, or 84 cents a share, up from $1.5 billion, or
74 cents a share, a year ago.
Analysts had expected earnings of 77 cents a share, excluding
the impact from the new tax law, which has hit each of the big
banks to varying degrees.
Morgan Stanley's closest rival, Goldman Sachs Group Inc., on
Wednesday reported core profits that were slightly higher than
2016, as strength in investment banking and lending overcame
continued problems in its trading arm. The two firms have similar
footprints in investment banking and trading, and are old rivals in
these core Wall Street activities.
Morgan Stanley's X-Factor increasingly is its giant retail
brokerage, which oversees $2.3 trillion for some 3.5 million
American households. This business gets most of its revenue from
steady fees, assessed as a percentage of client portfolios whose
value has marched higher with the stock market.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
January 18, 2018 07:21 ET (12:21 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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