Shares of Morgan Stanley (NYSE: MS), a global financial services company, have risen sharply in early trading today after the Wall Street giant reported strong fourth-quarter financial results.
For the quarter ended December 31, 2012, MS reported net revenue of $7 billion, up from $5.7 billion reported for the same period in the previous year.
Morgan Stanley reported net income of $481 million, or $0.25 per share for the quarter, compared to a loss of $0.15 per share reported for the same period in the previous year. Excluding one-time charges, the company’s profit for the quarter was $0.45 per share, well above the consensus forecast of $0.27 per share.
Commenting on the fourth-quarter results, James P. Gorman, Chairman and CEO of Morgan Stanley, said that after a year of significant challenges, MS has reached a pivot point. Gorman said that the company has demonstrated meaningful progress in its Wealth Management Joint Venture, reaching the highest pre-tax margin since the inception of the JV. Gorman added that the company is ahead of its risk-weighted asset reduction targets for Fixed Income and Commodities, while continuing to focus on its strengths within business and strategic linkages across the Firm and investing for the evolving regulatory environment.
In the fourth quarter, Morgan Stanley’s Institutional Securities division registered a pre-tax gain from continuing operations of $57 million, compared to a pre-tax loss of $772 million reported for the same period in the previous year. Net revenue for the quarter was $3 billion, compared to $2.1 billion reported for the same period in the previous year.
Net revenue at the Global Wealth Management Group was $3.5 billion, compared to $3.2 billion reported for the same period in the previous year.
At last check, Morgan Stanley shares were trading 5.93% higher at $21.98 on volume of 13.34 million.
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