Morgan Stanley: record revenues in wealth management, sales and trading

Morgan Stanley third quarter 2016 net revenue was of $8.9 Billion, net income $1.6 billion, earnings per diluted share of $0.81.

morgan stanleyMorgan Stanley (NYSE: MS) reported net revenues of $8.9 billion for the third quarter ended September 30, 2016 compared with $7.8 billion a year ago. For the current quarter, net income was $1.6 billion, or $0.81 per diluted share, compared with income of $1.0 billion, or $0.48 per diluted share, for the same period a year ago.

The prior year quarter included DVA revenues of $435 million. Excluding DVA in the prior year quarter, net revenues were $7.3 billion and income was $740 million, or $0.34 per diluted share.

Compensation expense of $4.1 billion increased from $3.4 billion a year ago primarily driven by higher revenues. Non-compensation expenses of $2.4 billion decreased from $2.9 billion a year ago reflecting lower litigation costs and continued execution of the Firm’s expense management initiatives.

The annualized return on average common equity was 8.7 percent in the current quarter.

This quarter we saw record revenues in Wealth Management and a strong performance in our Sales and Trading business. While the environment was more challenging for our equity underwriting and asset management businesses, our expense initiatives remain on track. Overall the results reflect steady progress against our long term strategic goals” said James P. Gorman, Chairman and Chief Executive Officer.