January 21, 2023

Here’s the latest earnings summarized for you. If you like it, please share it with your friends.

  • The firm reported a net revenue of $12.7 billion for the fourth quarter of 2022, compared to $14.5 billion in the same period of 2021 [Negative]
  • The full year net revenue for 2022 was $53.7 billion compared to $59.8 billion in 2021 [Negative]
  • The firm reported a net income of $2.2 billion, or $1.26 per diluted share for Q4 2022, compared to $3.7 billion, or $2.01 per diluted share in Q4 2021 [Negative]
  • The full year net income for 2022 was $11.0 billion, or $6.15 per diluted share, compared to $15.0 billion, or $8.03 per diluted share in 2021 [Negative]
  • The firm reported a Return on Tangible Common Equity (ROTCE) of 12.6% for Q4 2022, and 15.3% for the full year of 2022 [Neutral]
  • The firm’s expense efficiency ratio for the full year of 2022 was 73%, or 72% excluding integration-related expenses [Neutral]
  • The firm’s standardized Common Equity Tier 1 capital ratio was 15.3% [Neutral]
  • Institutional Securities reported a full year net revenue of $24.4 billion, reflecting lower activity in Investment Banking due to uncertain macroeconomic environment, but with strong performance in Fixed Income [Neutral]
  • Wealth Management delivered record full year net revenues of $24.4 billion, a pre-tax margin of 27.0%, and added net new assets of $311 billion, representing a full year 6% annualized growth rate from beginning period assets [Positive]
  • Investment Management reported full year net revenues of $5.4 billion and AUM of $1.3 trillion in a challenging market environment [Neutral]

Overall, the company’s revenue and net income have decreased in comparison to the previous year, which would likely have a negative impact on the stock price. However, the company’s wealth management business performed well, with record revenues, pre-tax margin, and added net new assets, which could positively impact the stock price. Additionally, the company’s strong capital position, including the return on tangible common equity, and expense efficiency ratio, could also be seen positively by investors.

Link to the post on community: https://www.skool.com/invest-retire-community-1699/morgan-stanley-ms-top-10-insights-for-q4-2022-earnings

Link to the full earnings: https://www.morganstanley.com/content/dam/msdotcom/en/about-us-ir/shareholder/4q2022.pdf

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About the author 

Eric Seto

Eric Seto is an investor with over 10 years of experience. He travelled around the world to help with auditing, accounting, purchase and sale of companies.

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