Compared to 2018, Morgan Stanley’s net income and diluted earnings per share posted an increase in 2019

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Image: Morgan Stanley's office on Times Square, New York. (Credit: Suresh)

American investment banking and financial services giant Morgan Stanley has reported $41.4bn of net revenues for last year, compared to $40.1bn of net revenues in 2018.

Morgan Stanley’s net income for last year-end was $9bn, compared to that of $8.74bn recorded in the year earlier. Compared to 2018, last year’s income increased by 3%.

Total expenses incurred by the company last year stood at $30.11bn, which increased from $28.87bn in 2018. The increase in the expenses was 4%.

Morgan Stanley posted the earnings per diluted share of $5.19 for the last year, up 10% compared to 2018’s earnings per diluted share of $4.73.

 Segment-wise results posted by Morgan Stanley

Under the institutional securities head, the company earned $20.38bn and the pre-tax income from the division was $5.5bn. Compared to 2018, the pre-tax income came down from $6.3bn.

Institutional securities head includes subheads such as investment banking, sales and trading investments and others. Revenues from investment banking, and sales and trading were $5.7bn and $13.6bn, respectively.

Net revenue from investment banking decreased last year, compared to 2018, which stood at $6.08bn. Sales and trading had also decreased slightly compared to 2018.

Net revenue under the head wealth management stood at $17.7bn, which was an increase compared to 2018 figure of $17.2bn.

Activities under wealth management include asset management, whose revenue had marginally increased from $10.15bn in 2018 to $10.19bn last year.

Transactional revenues had also increased from $2.55bn in 2018 to $2.9bn for last year. Net interest income had fallen marginally from $4.27bn in 2018 to $4.22bn for last year.Other revenues under wealth management jumped from $249m in 2018 to $349m, last year.

Under the head investment management, the bank posted net revenue of $3.7bn, which increased from $2.7bn in 2018.

Morgan Stanley chairman and CEO James P. Gorman said: “We delivered strong quarterly earnings across all of our businesses. Firmwide revenues were over $10 billion for the fourth consecutive quarter, resulting in record full year revenues and net income. This consistent performance met all of our stated performance targets.”