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Morgan Stanley(MS) - 2024 Q2 - Quarterly Results
MSMorgan Stanley(MS)2024-07-16 11:36

Financial Performance - Net revenues for Q2 2024 were 15,019million,adecreaseof115,019 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,adecreaseof101.82, 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 15,136millionyear−over−year,butanincreaseof1215,136 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 1,520million,down161,520 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 1,377millioninthepreviousquarterandan81,377 million in the previous quarter and an 8% increase from 1,281 million year-over-year[21] Expenses and Costs - Non-interest expenses totaled 10,869million,reflectinga110,869 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 10.484billioninQ22023[35]−CompensationandbenefitsinWealthManagementforQ22024were10.484 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 6.460billion,comparedto6.460 billion, compared to 6.262 billion in Q2 2023[35] - The adjusted compensation expense for Q2 2024 was 6.405billion,comparedto6.405 billion, compared to 6.084 billion in Q2 2023[36] Capital and Assets - Total assets decreased by 1% from 1,228,503millionto1,228,503 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 69.9billionto69.9 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 319,580million,showingnopercentagechangefromthepreviousquarter[8]−Totalassetsundermanagementincreasedto319,580 million, showing no percentage change from the previous quarter[8] - Total assets under management increased to 1,518 billion, a 1% increase from 1,505billioninthepreviousquarterandan81,505 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 224,276millionto224,276 million to 237,696 million, and by 6% compared to the previous quarter[8] - Total consolidated loans and lending commitments reached 397.3billionasofJune30,2024,anincreaseof3397.3 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 369.8billionayearago[26]−Totalloansincreasedby9369.8 billion a year ago[26] - Total loans increased by 9% year-over-year to 86.3 billion, with corporate loans at 17.7billion,securedlendingfacilitiesat17.7 billion, secured lending facilities at 48.3 billion, and commercial and residential real estate loans at 12.6billion[26]−Theallowanceforcreditlosses(ACL)forconsolidatedloansandlendingcommitmentswas12.6 billion[26] - The allowance for credit losses (ACL) for consolidated loans and lending commitments was 1.730 billion, representing a provision of 76millionforthequarter[29]−InstitutionalSecuritiesloansandlendingcommitmentstotaled76 million for the quarter[29] - Institutional Securities loans and lending commitments totaled 227.4 billion, up 4% from 218.1billioninthepreviousquarterand10218.1 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 5,690million,up45,690 million, up 4% from 5,495 million in the previous quarter and 16% from 4,885millionyear−over−year[18]−WealthManagementnetrevenuesforQ22024were4,885 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 343billionasofJune30,2024,consistentwiththepreviousquarterandthesameperiodlastyear[38]−Fee−basedclientassetsreached343 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 2,124millioninthepreviousquarterandup182,124 million in the previous quarter and up 18% from 1,856 million year-over-year[18] - Advisor-led client assets grew to 4,443million,a34,443 million, a 3% increase from 4,302 million in the previous quarter and a 17% increase from 3,784millionyear−over−year[18]CreditLossesandProvisions−Provisionforcreditlosseswas3,784 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 22million,asignificantimprovementfromaprovisionof22 million, a significant improvement from a provision of 64 million in Q2 2023[16] - The total provision for credit losses across all segments was 107millionforthequarter[39]−Thenetcharge−offsforLoanswere107 million for the quarter[39] - The net charge-offs for Loans were 50 million, with 48millionattributedtoInstitutionaland48 million attributed to Institutional and 2 million to Wealth Management[39]