Morgan Stanley (NYSE:MS) Q2 2024 Earnings Conference Call July 16, 2024 9:30 AM ET Company Participants Ted Pick - CEO Sharon Yeshaya - CFO Conference Call Participants Glenn Schorr - Evercore Ebrahim Poonawala - Bank of America Mike Mayo - Wells Fargo Securities Dan Fannon - Jefferies Brennan Hawken - UBS Devin Ryan - JMP Securities Steven Chubak - Wolfe Research Gerard Cassidy - RBC Saul Martinez - HSBC Operator Good morning. Welcome to Morgan Stanley's Second Quarter 2024 Earnings Call. On behalf of Morg ...

Bank earnings are flooding in, with Morgan Stanley (NYSE:MS) and Charles Schwab Corporation (NYSE:SCHW) among the latest to report second-quarter results. Both firms surpassed top- and bottom-line expectations, with the former seeing strong performance in both trading and investment banking and the latter missing net interest margin estimates.MS is up 1.3% to trade at $106.65 at last check, reversing premarket losses. The shares yesterday surged to a two-year high of $106.53 and now sport a 12.4% year-to-da ...

Morgan Stanley’s (MS) second-quarter 2024 earnings of $1.82 per share handily outpaced the Zacks Consensus Estimate of $1.65. The bottom line also compared favorably with $1.24 per share reported in the prior-year quarter.Shares of the company plunged more than 3% in the pre-market trading on subdued wealth management performance.Like Wall Street peers, Morgan Stanley’s investment banking (IB) business rebounded. Advisory fees surged 30% year over year. Further, underwriting fees witnessed solid momentum in ...

Financial Performance - Net revenues for Q2 2024 were $15,019 million, a decrease of 1% from Q1 2024 and an increase of 12% from Q2 2023[2] - Net income applicable to Morgan Stanley was $3,076 million, down 10% from Q1 2024 but up 41% from Q2 2023[2] - Earnings per diluted share for Q2 2024 were $1.82, a decrease of 10% from Q1 2024 and an increase of 47% from Q2 2023[5] - Consolidated net revenues for the quarter were $15,019 million, a decrease of 1% from $15,136 million year-over-year, but an increase of 12% compared to the same quarter last year[8] - Net revenues for Q2 2024 totaled $6,982 million, a slight decrease of 1% from Q1 2024 but a 23% increase year-over-year[13] - Net income applicable to Morgan Stanley for Q2 2024 was $1,520 million, down 16% from Q1 2024 but up 100% from Q2 2023[13] - Net revenues for the quarter were $1,386 million, a slight increase of 1% from $1,377 million in the previous quarter and an 8% increase from $1,281 million year-over-year[21] Expenses and Costs - Non-interest expenses totaled $10,869 million, reflecting a 1% increase from Q1 2024 and a 4% increase from Q2 2023[2] - Total non-interest expenses for Q2 2024 were $10.869 billion, an increase from $10.484 billion in Q2 2023[35] - Compensation and benefits in Wealth Management for Q2 2024 were $3,601 million, down 5% from Q1 2024 and up 3% year-over-year[16] - Compensation and benefits expenses for Q2 2024 amounted to $6.460 billion, compared to $6.262 billion in Q2 2023[35] - The adjusted compensation expense for Q2 2024 was $6.405 billion, compared to $6.084 billion in Q2 2023[36] Capital and Assets - Total assets decreased by 1% from $1,228,503 million to $1,212,447 million year-over-year, but increased by 4% compared to the previous quarter[8] - Common Equity Tier 1 capital increased by 2% from $69.9 billion to $71.8 billion year-over-year[11] - Tier 1 capital ratio improved to 17.0%, up from 16.9% in the previous quarter[11] - Average liquidity resources remained stable at $319,580 million, showing no percentage change from the previous quarter[8] - Total assets under management increased to $1,518 billion, a 1% increase from $1,505 billion in the previous quarter and an 8% increase from $1,412 billion year-over-year[24] Loans and Lending Commitments - Loans increased by 5% year-over-year from $224,276 million to $237,696 million, and by 6% compared to the previous quarter[8] - Total consolidated loans and lending commitments reached $397.3 billion as of June 30, 2024, an increase of 3% from $384.4 billion at the end of March 31, 2024, and a 7% increase from $369.8 billion a year ago[26] - Total loans increased by 9% year-over-year to $86.3 billion, with corporate loans at $17.7 billion, secured lending facilities at $48.3 billion, and commercial and residential real estate loans at $12.6 billion[26] - The allowance for credit losses (ACL) for consolidated loans and lending commitments was $1.730 billion, representing a provision of $76 million for the quarter[29] - Institutional Securities loans and lending commitments totaled $227.4 billion, up 4% from $218.1 billion in the previous quarter and 10% from $206.3 billion a year ago[26] Client Assets and Wealth Management - Total client assets increased to $5,690 million, up 4% from $5,495 million in the previous quarter and 16% from $4,885 million year-over-year[18] - Wealth Management net revenues for Q2 2024 were $6,792 million, a decrease of 1% from Q1 2024 but a 2% increase year-over-year[16] - Wealth Management client assets totaled $343 billion as of June 30, 2024, consistent with the previous quarter and the same period last year[38] - Fee-based client assets reached $2,188 million, up 3% from $2,124 million in the previous quarter and up 18% from $1,856 million year-over-year[18] - Advisor-led client assets grew to $4,443 million, a 3% increase from $4,302 million in the previous quarter and a 17% increase from $3,784 million year-over-year[18] Credit Losses and Provisions - Provision for credit losses was $76 million, a significant decrease of 53% compared to Q2 2023[2] - Provision for credit losses in Wealth Management for Q2 2024 was $22 million, a significant improvement from a provision of $64 million in Q2 2023[16] - The total provision for credit losses across all segments was $107 million for the quarter[39] - The net charge-offs for Loans were $50 million, with $48 million attributed to Institutional and $2 million to Wealth Management[39]

The performance of Morgan Stanley’s (MS) trading business (constituting a significant portion of its top line) is expected to have been decent in the second quarter of 2024, supported by increased client activity. Thus, the company’s trading numbers are likely to have provided some support to its quarterly results, slated to be announced before the opening bell on Jul 16.In the to-be-reported quarter, the likelihood of a soft landing of the U.S. economy, gradually cooling inflation and clarity on the intere ...

The upcoming report from Morgan Stanley (MS) is expected to reveal quarterly earnings of $1.66 per share, indicating an increase of 33.9% compared to the year-ago period. Analysts forecast revenues of $14.23 billion, representing an increase of 5.7% year over year.The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before ...

The latest trading session saw Morgan Stanley (MS) ending at $103.46, denoting a +0.83% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 1.02%. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 1.18%.The investment bank's shares have seen an increase of 7.52% over the last month, surpassing the Finance sector's loss of 5.14% and the S&P 500's gain of 4.44%.The upcoming earnings release of Morgan Stanley will be of great interest to investors. The compa ...

The market expects Morgan Stanley (MS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 16, 2024, might help the stock move higher if these key numbers are be ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view i ...

In the latest market close, Morgan Stanley (MS) reached $97.80, with a +0.72% movement compared to the previous day. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq added 0.16%.Coming into today, shares of the investment bank had lost 1.89% in the past month. In that same time, the Finance sector gained 0.26%, while the S&P 500 gained 2.83%.Investors will be eagerly watching for the performance of Morgan Stanley in its upcoming earnings dis ...