Morgan Stanley (NYSE:MS) today reported net revenues of $7.9 billion for
the third quarter ended September 30, 2013 compared with $5.3 billion a
year ago. For the current quarter, income from continuing operations
applicable to Morgan Stanley was $888 million, or $0.44 per diluted
share,6 compared with a loss of $1.0 billion, or a loss of
$0.55 per diluted share,6 for the same period a year ago.
Results for the current quarter included negative revenue related to
changes in Morgan Stanley’s debt-related credit spreads and other credit
factors (Debt Valuation Adjustment, DVA)1 of $171 million,
compared with $2.3 billion a year ago.
Excluding DVA, net revenues for the current quarter were $8.1 billion
compared with $7.5 billion a year ago and income from continuing
operations applicable to Morgan Stanley was $1.0 billion, or $0.50 per
diluted share, compared with income of $560 million, or $0.28 per
diluted share, a year ago.3,7
Compensation expense of $4.0 billion was relatively unchanged from a
year ago. Non-compensation expenses of $2.6 billion decreased from $2.8
billion in the prior year primarily due to the absence of non-recurring
Wealth Management integration expenses in the prior year quarter.
For the current quarter, net income applicable to Morgan Stanley,
including discontinued operations, was $0.45 per diluted share, compared
with a loss of $0.55 per diluted share in the third quarter of 2012.6
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Summary of Firm Results
(dollars in millions)
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As Reported
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Excluding DVA7
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Net
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MS Income
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Net
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MS Income
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Revenues
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Cont. Ops.
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Revenues
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Cont. Ops.
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3Q 2013
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$7,932
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$888
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$8,103
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$1,009
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2Q 2013
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$8,503
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$1,009
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$8,328
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$898
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3Q 2012
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$5,280
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$(1,008)
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$7,542
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$560
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Business Overview
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Institutional Securities net revenues excluding DVA8 were
$3.9 billion reflecting strong performance in Equity sales and
trading, solid results in Investment Banking and lower results in
Fixed Income & Commodities sales and trading.
-
Wealth Management net revenues were $3.5 billion and pre-tax margin
was 19%.5 Fee based asset flows for the quarter were $15.0
billion and total client assets were $1.8 trillion at quarter end.
-
Investment Management reported net revenues of $828 million with
assets under management or supervision of $360 billion.
James P. Gorman, Chairman and Chief Executive Officer, said, “Our
results point to the increased consistency, strength and balance we are
deriving from our business model. Our strategy to combine a world class
investment bank with the stability of the largest U.S. wealth management
franchise and strong investment management is enabling us to deliver
exceptional advice and execution for our clients as well as stronger
returns for our shareholders. Overall, our stronger year-over-year
revenues and net income reflect the progress we have made to position
the Firm well for the future.”
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Summary of Institutional Securities Results
(dollars
in millions)
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As Reported
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Excluding DVA8
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Net
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Pre-Tax
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Net
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Pre-Tax
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Revenues
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Income
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Revenues
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Income
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3Q 2013
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$3,686
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$371
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$3,857
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$542
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2Q 2013
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$4,346
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$960
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$4,171
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$785
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3Q 2012
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$1,481
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$(1,928)
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$3,743
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$334
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INSTITUTIONAL SECURITIES
Institutional Securities reported pre-tax income from continuing
operations of $371 million compared with a pre-tax loss of $1.9 billion
in the third quarter of last year. Net revenues for the current quarter
were $3.7 billion compared with $1.5 billion a year ago. DVA resulted in
negative revenue of $171 million in the current quarter compared with
$2.3 billion a year ago. Excluding DVA, net revenues for the current
quarter were $3.9 billion compared with $3.7 billion a year ago.8
The quarter’s pre-tax margin was 10% (excluding DVA, 14%).5,8
Income after the noncontrolling interest allocation and before taxes was
$323 million.9 The following discussion for sales and trading
excludes DVA.
-
Advisory revenues of $275 million declined from $339 million a year
ago reflecting lower levels of completed market activity. Equity
underwriting revenues were $236 million compared with $199 million a
year ago reflecting increased client activity. Fixed income
underwriting revenues were $481 million compared with $431 million a
year ago reflecting growth in investment grade bond and loan fees.
-
Equity sales and trading net revenues of $1.7 billion increased from
$1.3 billion in the prior year quarter reflecting strong performance
across products and regions.10
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Fixed Income & Commodities sales and trading net revenues were $835
million compared with $1.5 billion a year ago. Results reflect lower
client activity and market volumes across all products.10
-
Investment revenues were $337 million compared with $74 million in the
prior year quarter. Results for the current quarter were driven
primarily by a gain resulting from the disposition of an investment in
an insurance broker.
-
Other revenues were $138 million compared with $64 million in the
third quarter of last year, due principally to the equity investment
in our Japanese joint venture, Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd.
-
Compensation expense for the current quarter of $1.6 billion compared
with $1.7 billion in the prior year quarter. Non-compensation expenses
of $1.7 billion were relatively unchanged from a year ago.
-
Morgan Stanley’s average trading Value-at-Risk (VaR) measured at the
95% confidence level was $52 million compared with $61 million in the
second quarter of 2013 and $63 million in the third quarter of the
prior year.11
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Summary of Wealth Management Results
(dollars in
millions)
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Net
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Pre-Tax
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Revenues
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Income
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3Q 2013
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$3,481
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$668
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2Q 2013
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$3,531
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$655
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3Q 2012
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$3,222
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$247
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WEALTH MANAGEMENT
Wealth Management reported pre-tax income from continuing operations of
$668 million compared with $247 million in the third quarter of last
year. The quarter’s pre-tax margin was 19%.5 Net revenues for
the current quarter were $3.5 billion compared with $3.2 billion a year
ago. Results for the current quarter do not include a noncontrolling
interest allocation to Citigroup Inc. (Citi) following the completed
acquisition of the Wealth Management Joint Venture, whereas the prior
year quarter included a noncontrolling interest allocation to Citi of $9
million.12
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Asset management fee revenues of $1.9 billion increased 6% from last
year’s third quarter primarily reflecting an increase in fee based
assets and positive flows, partially offset by lower referral fees
from Citi.
-
Transactional revenues13 of $1.0 billion increased from
$952 million a year ago reflecting higher trading revenues and
increased commissions and fees, partly offset by lower investment
banking revenues.
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Compensation expense for the current quarter of $2.0 billion was
relatively unchanged from a year ago. Non-compensation expenses of
$796 million decreased from $1.0 billion a year ago driven primarily
by the absence of non-recurring integration costs reported in the
prior year quarter,14 and continued expense discipline.
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Total client assets were $1.8 trillion at quarter end. Client assets
in fee based accounts of $652 billion increased 22% compared with the
prior year quarter. Fee based asset flows for the quarter were $15.0
billion.
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Wealth Management representatives of 16,517 increased from 16,378 as
of September 30, 2012. Average annualized revenue per representative
of $848,000 and total client assets per representative of $110 million
increased 8% and 7%, respectively, compared with the prior year
quarter.
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Summary of Investment Management Results
(dollars
in millions)
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Net
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Pre-Tax
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Revenues
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Income
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3Q 2013
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$828
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$300
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2Q 2013
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$673
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$160
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3Q 2012
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$631
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$198
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INVESTMENT MANAGEMENT
Investment Management reported pre-tax income from continuing operations
of $300 million compared with pre-tax income of $198 million in last
year’s third quarter.15 The quarter’s pre-tax margin was 36%.5
Income after the noncontrolling interest allocation and before taxes was
$236 million.
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Net revenues of $828 million increased from $631 million in the prior
year driven by gains on investments in the Merchant Banking and Real
Estate Investing businesses, reflecting stronger investment
performance, favorable market conditions and the benefit of carried
interest.16,17
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Compensation expense for the current quarter of $332 million increased
from $241 million a year ago on higher revenues. Non-compensation
expenses of $196 million were relatively unchanged from a year ago.
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Assets under management or supervision at September 30, 2013 of $360
billion increased from $331 billion a year ago primarily reflecting
market appreciation and positive flows. The business recorded net
flows of $1.8 billion in the current quarter.
CAPITAL
Morgan Stanley’s Tier 1 capital ratio under Basel I was approximately
15.3% and Tier 1 common ratio was approximately 12.6% at September 30,
2013.18
At September 30, 2013, book value and tangible book value per common
share were $32.13 and $26.96,19 respectively, based on
approximately 2.0 billion shares outstanding.
OTHER MATTERS
The effective tax rate from continuing operations for the current
quarter was 25.3%. The quarter includes a discrete net tax benefit of
$73 million that is attributable to tax planning strategies to optimize
foreign tax credit utilization as a result of the anticipated
repatriation of earnings from certain non-U.S. subsidiaries.
Firmwide deposits increased by approximately $21 billion during the
quarter as a result of the contractual transfer of deposits from Citi
subsequent to the closing of the acquisition of the remaining 35%
interest of the Wealth Management Joint Venture.
During the quarter ended September 30, 2013, the Firm repurchased
approximately $123 million of its common stock or approximately 4.5
million shares.
The Firm declared a $0.05 quarterly dividend per common share, payable
on November 15, 2013 to common shareholders of record on October 31,
2013.
Morgan Stanley is a leading global financial services firm providing a
wide range of investment banking, securities, investment management and
wealth management services. The Firm’s employees serve clients worldwide
including corporations, governments, institutions and individuals from
more than 1,200 offices in 43 countries. For further information about
Morgan Stanley, please visit www.morganstanley.com.
A financial summary follows. Financial, statistical and business-related
information, as well as information regarding business and segment
trends, is included in the Financial Supplement. Both the earnings
release and the Financial Supplement are available online in the
Investor Relations section at www.morganstanley.com.
###
(See Attached Schedules)
The information above contains forward-looking statements. Readers are
cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date on which they are made and which reflect
management's current estimates, projections, expectations or beliefs and
which are subject to risks and uncertainties that may cause actual
results to differ materially. For a discussion of additional risks and
uncertainties that may affect the future results of the Company, please
see “Forward-Looking Statements” immediately preceding Part I, Item 1,
“Competition” and “Supervision and Regulation” in Part I, Item 1, “Risk
Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3,
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations” in Part II, Item 7 and “Quantitative and Qualitative
Disclosures about Market Risk” in Part II, Item 7A, each of the
Company's Annual Report on Form 10-K for the year ended December 31,
2012 and other items throughout the Form 10-K, the Company’s Quarterly
Reports on Form 10-Q, and the Company’s Current Reports on Form 8-K,
including any amendments thereto.
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1 Represents the change in the fair value of certain of
Morgan Stanley’s long-term and short-term borrowings resulting from
fluctuations in its credit spreads and other credit factors
(commonly referred to as “DVA”).
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2 From time to time, Morgan Stanley may disclose certain
“non-GAAP financial measures” in the course of its earnings
releases, earnings conference calls, financial presentations and
otherwise. For these purposes, “GAAP” refers to generally accepted
accounting principles in the United States. The Securities and
Exchange Commission (SEC) defines a “non-GAAP financial measure” as
a numerical measure of historical or future financial performance,
financial positions, or cash flows that is subject to adjustments
that effectively exclude, or include amounts from the most directly
comparable measure calculated and presented in accordance with GAAP.
Non-GAAP financial measures disclosed by Morgan Stanley are provided
as additional information to investors in order to provide them with
greater transparency about, or an alternative method for assessing
our financial condition and operating results. These measures are
not in accordance with, or a substitute for GAAP, and may be
different from or inconsistent with non-GAAP financial measures used
by other companies. Whenever we refer to a non-GAAP financial
measure, we will also generally present the most directly comparable
financial measure calculated and presented in accordance with GAAP,
along with a reconciliation of the differences between the non-GAAP
financial measure we reference and such comparable GAAP financial
measure.
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3 Earnings (loss) per diluted share amounts, excluding
DVA, are non-GAAP financial measures that the Firm considers useful
for investors to allow better comparability of period-to-period
operating performance. Such exclusions are provided to differentiate
revenues associated with Morgan Stanley borrowings, regardless of
whether the impact is either positive, or negative, that result
solely from fluctuations in credit spreads and other credit factors.
The reconciliation of earnings (loss) per diluted share from
continuing operations applicable to Morgan Stanley common
shareholders and average diluted shares from a non-GAAP to GAAP
basis is as follows (shares and DVA are presented in millions):
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3Q 2013
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3Q 2012
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Earnings (loss) per diluted share from cont. ops. – Non-GAAP
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$0.50
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$0.28
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DVA impact
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($0.06)
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($0.83)
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Earnings (loss) per diluted share from cont. ops. – GAAP
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$0.44
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($0.55)
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Average diluted shares – Non-GAAP
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1,965
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1,924
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DVA impact
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0
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(35)
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Average diluted shares – GAAP
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1,965
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1,889
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4 Source: Thomson Reuters – for the period of January 1,
2013 to September 30, 2013.
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5 Pre-tax margin is a non-GAAP financial measure that the
Firm considers useful for investors to assess operating performance.
Pre-tax margin represents income (loss) from continuing operations
before taxes divided by net revenues.
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6 Includes preferred dividends and other adjustments
related to the calculation of earnings per share for the third
quarter of 2013 and 2012 of approximately $26 million and $24
million, respectively. Refer to page 3 of Morgan Stanley’s Financial
Supplement accompanying this release for the calculation of earnings
per share.
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7 Net revenues and income (loss) from continuing
operations applicable to Morgan Stanley, excluding DVA, are non-GAAP
financial measures that the Firm considers useful for investors to
allow for better comparability of period-to-period operating
performance. The reconciliation of net revenues and income (loss)
from continuing operations applicable to Morgan Stanley from a
non-GAAP to GAAP basis is as follows (amounts are presented in
millions):
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3Q 2013
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2Q 2013
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3Q 2012
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Firm net revenues – Non-GAAP
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$8,103
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$8,328
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$7,542
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DVA impact
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$(171)
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$175
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$(2,262)
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Firm net revenues – GAAP
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$7,932
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$8,503
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$5,280
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Income (loss) applicable to MS – Non-GAAP
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$1,009
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$898
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$560
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DVA after-tax impact
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$(121)
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$111
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$(1,568)
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Income (loss) applicable to MS – GAAP
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$888
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$1,009
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$(1,008)
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8 Institutional Securities net revenues and pre-tax
income (loss), excluding DVA, are non-GAAP financial measures that
the Firm considers useful for investors to allow for better
comparability of period-to-period operating performance. The
reconciliation of net revenues and pre-tax income (loss) from a
non-GAAP to GAAP basis is as follows (amounts are presented in
millions):
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3Q 2013
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2Q 2013
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3Q 2012
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Net revenues – Non-GAAP
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$3,857
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$4,171
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$3,743
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DVA impact
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$(171)
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$175
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$(2,262)
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Net revenues – GAAP
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$3,686
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$4,346
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$1,481
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Pre-tax income (loss) – Non-GAAP
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$542
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$785
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$334
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DVA impact
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$(171)
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$175
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$(2,262)
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Pre-tax income (loss) – GAAP
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$371
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$960
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$(1,928)
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9 Noncontrolling interests reported in the Institutional
Securities business segment primarily represents the allocation to
MUFG of Morgan Stanley MUFG Securities Co., Ltd., which the Firm
consolidates.
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10 Sales and trading net revenues, including Fixed Income
& Commodities (FIC) and Equity sales and trading net revenues
excluding DVA, are non-GAAP financial measures that the Firm
considers useful for investors to allow better comparability of
period-to-period operating performance. The reconciliation of sales
and trading, including FIC and Equity sales and trading net revenues
from a non-GAAP to GAAP basis is as follows (amounts are presented
in millions):
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3Q 2013
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3Q 2012
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Sales & Trading – Non-GAAP
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$2,390
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$2,636
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DVA impact
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$(171)
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$(2,262)
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Sales & Trading – GAAP
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$2,219
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$374
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FIC Sales & Trading – Non-GAAP
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$835
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$1,458
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DVA impact
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$(141)
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$(1,621)
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FIC Sales & Trading – GAAP
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$694
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$(163)
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Equity Sales & Trading – Non-GAAP
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$1,710
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$1,341
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DVA impact
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$(30)
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$(641)
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Equity Sales & Trading – GAAP
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$1,680
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$700
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11 VaR represents the loss amount that one would not
expect to exceed, on average, more than five times every one hundred
trading days in the Firm’s trading positions if the portfolio were
held constant for a one-day period. Further discussion of the
calculation of VaR and the limitations of the Firm’s VaR methodology
is disclosed in Part II, Item 7A “Quantitative and Qualitative
Disclosures about Market Risk” included in Morgan Stanley’s Annual
Report on Form 10-K for the year ended December 31, 2012. Refer to
page 7 of Morgan Stanley’s Financial Supplement accompanying this
release for the VaR disclosure.
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12 On June 28, 2013, the Firm completed the purchase of
the remaining 35% interest in the Morgan Stanley Smith Barney Joint
Venture from Citi, increasing the Firm’s interest from 65% to 100%.
During the quarter ended September 30, 2012, Morgan Stanley
completed the purchase of an additional 14% stake in the Morgan
Stanley Smith Barney Joint Venture from Citi, increasing the Firm’s
interest from 51% to 65%. Prior to September 17, 2012, Citi’s
results related to its 49% interest were reported in net income
(loss) applicable to nonredeemable noncontrolling interests on page
8 of Morgan Stanley’s Financial Supplement accompanying this release.
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13 Transactional revenues include investment banking,
trading and commissions and fee revenues.
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14 In the third quarter of 2012, Wealth Management
non-compensation expenses reflected approximately $176 million of
non-recurring costs associated with the Morgan Stanley Wealth
Management integration and the purchase of the additional 14% stake
in the Joint Venture.
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15 Results for the third quarter of 2013 and 2012
included pre-tax income of $65 million and $50 million,
respectively, related to investments held by certain consolidated
real estate funds. The limited partnership interests in these funds
are reported in net income (loss) applicable to noncontrolling
interests on page 10 of Morgan Stanley’s Financial Supplement
accompanying this release.
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16 Results for the current quarter included gains of $67
million compared with gains of $51 million in the prior year quarter
related to investments held by certain consolidated real estate
funds.
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17 Carried interest represents an additional allocation
of fund income to the Firm, as general partner upon exceeding
cumulative fund performance thresholds.
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18 The Firm calculates its Tier 1 capital, Tier 1
capital ratios and risk-weighted assets (“RWAs”) in accordance
with the capital adequacy standards for financial holding
companies adopted by the Federal Reserve Board. These standards
are based upon a framework described in the International
Convergence of Capital Measurement and Capital Standards, July
1988, as amended, also referred to as Basel I. On January 1, 2013,
the U.S. banking regulators’ rules to implement the Basel
Committee’s market risk capital framework, commonly referred to as
“Basel 2.5”, became effective, which increases capital
requirements for securitizations and correlation trading within
the Firm’s trading book, as well as incorporating add-ons for
stressed VaR and incremental risk requirement. The Firm’s Tier 1
capital, Tier 1 capital ratios and RWAs for the quarters ended
September 30, 2013 and June 30, 2013 were calculated under this
revised framework. The Firm’s Tier 1 capital, Tier 1 capital
ratios and RWAs for prior quarters have not been recalculated
under this revised framework. In accordance with the Federal
Reserve Board’s definition, Tier 1 common capital is defined as
Tier 1 capital less non-common elements in Tier 1 capital,
including perpetual preferred stock and related surplus, minority
interest in subsidiaries, trust preferred securities and mandatory
convertible preferred securities. These computations are
preliminary estimates as of October 18, 2013 (the date of this
release) and could be subject to revision in Morgan Stanley’s
Quarterly Report on Form 10-Q for the quarter ended September 30,
2013.
|
|
|
|
19 Tangible common equity and tangible book value per
common share are non-GAAP financial measures that the Firm considers
to be useful measures of capital adequacy. Tangible common equity
equals common equity less goodwill and intangible assets net of
allowable mortgage servicing rights deduction. Tangible book value
per common share equals tangible common equity divided by period end
common shares outstanding.
|
|
|
|
|
|
|
|
MORGAN STANLEY
|
|
|
|
Quarterly Financial Summary
|
|
|
|
(unaudited, dollars in millions, except for per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Percentage Change From:
|
|
Nine Months Ended
|
|
Percentage
|
|
|
|
Sept 30, 2013
|
|
June 30, 2013
|
|
Sept 30, 2012
|
|
June 30, 2013
|
|
Sept 30, 2012
|
|
Sept 30, 2013
|
|
Sept 30, 2012
|
|
Change
|
|
Net revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional Securities
|
|
$
|
3,686
|
|
|
$
|
4,346
|
|
|
$
|
1,481
|
|
|
(15
|
%)
|
|
149
|
%
|
|
$
|
12,121
|
|
|
$
|
7,948
|
|
|
53
|
%
|
|
Wealth Management
|
|
|
3,481
|
|
|
|
3,531
|
|
|
|
3,222
|
|
|
(1
|
%)
|
|
8
|
%
|
|
|
10,482
|
|
|
|
9,709
|
|
|
8
|
%
|
|
Investment Management
|
|
|
828
|
|
|
|
673
|
|
|
|
631
|
|
|
23
|
%
|
|
31
|
%
|
|
|
2,146
|
|
|
|
1,620
|
|
|
32
|
%
|
|
Intersegment Eliminations
|
|
|
(63
|
)
|
|
|
(47
|
)
|
|
|
(54
|
)
|
|
(34
|
%)
|
|
(17
|
%)
|
|
|
(156
|
)
|
|
|
(131
|
)
|
|
(19
|
%)
|
|
Consolidated net revenues
|
|
$
|
7,932
|
|
|
$
|
8,503
|
|
|
$
|
5,280
|
|
|
(7
|
%)
|
|
50
|
%
|
|
$
|
24,593
|
|
|
$
|
19,146
|
|
|
28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional Securities
|
|
$
|
371
|
|
|
$
|
960
|
|
|
$
|
(1,928
|
)
|
|
(61
|
%)
|
|
*
|
|
$
|
2,129
|
|
|
$
|
(1,769
|
)
|
|
*
|
|
Wealth Management
|
|
|
668
|
|
|
|
655
|
|
|
|
247
|
|
|
2
|
%
|
|
170
|
%
|
|
|
1,920
|
|
|
|
1,060
|
|
|
81
|
%
|
|
Investment Management
|
|
|
300
|
|
|
|
160
|
|
|
|
198
|
|
|
88
|
%
|
|
52
|
%
|
|
|
647
|
|
|
|
369
|
|
|
75
|
%
|
|
Intersegment Eliminations
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
--
|
|
|
--
|
|
|
|
0
|
|
|
|
(4
|
)
|
|
*
|
|
Consolidated income (loss) from continuing operations before tax
|
|
$
|
1,339
|
|
|
$
|
1,775
|
|
|
$
|
(1,483
|
)
|
|
(25
|
%)
|
|
*
|
|
$
|
4,696
|
|
|
$
|
(344
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) applicable to Morgan Stanley
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional Securities
|
|
$
|
323
|
|
|
$
|
582
|
|
|
$
|
(1,273
|
)
|
|
(45
|
%)
|
|
*
|
|
$
|
1,546
|
|
|
$
|
(1,201
|
)
|
|
*
|
|
Wealth Management
|
|
|
430
|
|
|
|
326
|
|
|
|
161
|
|
|
32
|
%
|
|
167
|
%
|
|
|
1,012
|
|
|
|
537
|
|
|
88
|
%
|
|
Investment Management
|
|
|
135
|
|
|
|
101
|
|
|
|
104
|
|
|
34
|
%
|
|
30
|
%
|
|
|
320
|
|
|
|
143
|
|
|
124
|
%
|
|
Intersegment Eliminations
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
--
|
|
|
--
|
|
|
|
0
|
|
|
|
(4
|
)
|
|
*
|
|
Consolidated income (loss) applicable to Morgan Stanley
|
|
$
|
888
|
|
|
$
|
1,009
|
|
|
$
|
(1,008
|
)
|
|
(12
|
%)
|
|
*
|
|
$
|
2,878
|
|
|
$
|
(525
|
)
|
|
*
|
|
Earnings (loss) applicable to Morgan Stanley common shareholders
|
|
$
|
880
|
|
|
$
|
803
|
|
|
$
|
(1,047
|
)
|
|
10
|
%
|
|
*
|
|
$
|
2,619
|
|
|
$
|
(599
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per basic share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.45
|
|
|
$
|
0.44
|
|
|
$
|
(0.55
|
)
|
|
2
|
%
|
|
*
|
|
$
|
1.39
|
|
|
$
|
(0.32
|
)
|
|
*
|
|
Discontinued operations
|
|
$
|
0.01
|
|
|
$
|
(0.02
|
)
|
|
$
|
-
|
|
|
*
|
|
*
|
|
$
|
(0.02
|
)
|
|
$
|
-
|
|
|
*
|
|
Earnings per basic share
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
|
$
|
(0.55
|
)
|
|
10
|
%
|
|
*
|
|
$
|
1.37
|
|
|
$
|
(0.32
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.44
|
|
|
$
|
0.43
|
|
|
$
|
(0.55
|
)
|
|
2
|
%
|
|
*
|
|
$
|
1.36
|
|
|
$
|
(0.32
|
)
|
|
*
|
|
Discontinued operations
|
|
$
|
0.01
|
|
|
$
|
(0.02
|
)
|
|
$
|
-
|
|
|
*
|
|
*
|
|
$
|
(0.02
|
)
|
|
$
|
-
|
|
|
*
|
|
Earnings per diluted share
|
|
$
|
0.45
|
|
|
$
|
0.41
|
|
|
$
|
(0.55
|
)
|
|
10
|
%
|
|
*
|
|
$
|
1.34
|
|
|
$
|
(0.32
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from continuing operations
|
|
|
5.6
|
%
|
|
|
5.4
|
%
|
|
*
|
|
|
|
|
|
|
5.8
|
%
|
|
*
|
|
|
|
Return on average common equity
|
|
|
5.7
|
%
|
|
|
5.2
|
%
|
|
*
|
|
|
|
|
|
|
5.7
|
%
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from continuing operations excluding DVA
|
|
|
6.2
|
%
|
|
|
4.6
|
%
|
|
|
3.5
|
%
|
|
|
|
|
|
|
6.1
|
%
|
|
|
4.9
|
%
|
|
|
|
Return on average common equity excluding DVA
|
|
|
6.4
|
%
|
|
|
4.4
|
%
|
|
|
3.4
|
%
|
|
|
|
|
|
|
6.0
|
%
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common capital ratio
|
|
|
12.6
|
%
|
|
|
11.8
|
%
|
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital ratio
|
|
|
15.3
|
%
|
|
|
14.1
|
%
|
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share
|
|
$
|
32.13
|
|
|
$
|
31.48
|
|
|
$
|
30.53
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per common share
|
|
$
|
26.96
|
|
|
$
|
26.27
|
|
|
$
|
26.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
- Effective January 1, 2013, in accordance with U.S. banking
regulators’ rules, the Firm implemented the Basel Committee’s market
risk capital framework, commonly referred to as “Basel 2.5”.
|
|
|
|
- Results for the quarters ended September 30, 2013, June 30, 2013
and September 30, 2012, include positive (negative) revenue of
$(171) million, $175 million and $(2,262) million, respectively,
related to the movement in Morgan Stanley's credit spreads and other
credit factors on certain long-term and short-term debt (Debt
Valuation Adjustment, DVA).
|
|
|
|
|
|
|
- The return on average common equity metrics, return on average
common equity excluding DVA metrics and tangible book value per
common share are non-GAAP measures that the Firm considers to be
useful measures to assess operating performance and capital adequacy.
|
|
|
|
|
|
|
- Tier 1 common capital ratio equals Tier 1 common equity divided by
risk-weighted assets (RWAs).
|
|
|
|
- Tier 1 capital ratio equals Tier 1 capital divided by RWAs.
|
|
|
|
- Book value per common share equals common equity divided by period
end common shares outstanding.
|
|
|
|
- Tangible book value per common share equals tangible common equity
divided by period end common shares outstanding.
|
|
|
|
- See page 4 of the financial supplement for additional information
related to the calculation of the financial metrics.
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
MORGAN STANLEY
|
|
|
Quarterly Consolidated Income Statement Information
|
|
|
(unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Percentage Change From:
|
|
Nine Months Ended
|
|
Percentage
|
|
|
|
|
Sept 30, 2013
|
|
June 30, 2013
|
|
Sept 30, 2012
|
|
June 30, 2013
|
|
Sept 30, 2012
|
|
Sept 30, 2013
|
|
Sept 30, 2012
|
|
Change
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
$
|
1,160
|
|
|
$
|
1,303
|
|
|
$
|
1,152
|
|
|
(11
|
%)
|
|
1
|
%
|
|
$
|
3,687
|
|
|
$
|
3,319
|
|
|
11
|
%
|
|
|
Trading
|
|
|
2,259
|
|
|
|
2,894
|
|
|
|
607
|
|
|
(22
|
%)
|
|
*
|
|
|
7,847
|
|
|
|
5,478
|
|
|
43
|
%
|
|
|
Investments
|
|
|
728
|
|
|
|
188
|
|
|
|
290
|
|
|
*
|
|
151
|
%
|
|
|
1,254
|
|
|
|
438
|
|
|
186
|
%
|
|
|
Commissions and fees
|
|
|
1,080
|
|
|
|
1,217
|
|
|
|
988
|
|
|
(11
|
%)
|
|
9
|
%
|
|
|
3,465
|
|
|
|
3,205
|
|
|
8
|
%
|
|
|
Asset management, distribution and admin. fees
|
|
|
2,390
|
|
|
|
2,404
|
|
|
|
2,257
|
|
|
(1
|
%)
|
|
6
|
%
|
|
|
7,140
|
|
|
|
6,677
|
|
|
7
|
%
|
|
|
Other
|
|
|
204
|
|
|
|
293
|
|
|
|
141
|
|
|
(30
|
%)
|
|
45
|
%
|
|
|
700
|
|
|
|
403
|
|
|
74
|
%
|
|
|
Total non-interest revenues
|
|
|
7,821
|
|
|
|
8,299
|
|
|
|
5,435
|
|
|
(6
|
%)
|
|
44
|
%
|
|
|
24,093
|
|
|
|
19,520
|
|
|
23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
1,311
|
|
|
|
1,422
|
|
|
|
1,379
|
|
|
(8
|
%)
|
|
(5
|
%)
|
|
|
4,131
|
|
|
|
4,244
|
|
|
(3
|
%)
|
|
|
Interest expense
|
|
|
1,200
|
|
|
|
1,218
|
|
|
|
1,534
|
|
|
(1
|
%)
|
|
(22
|
%)
|
|
|
3,631
|
|
|
|
4,618
|
|
|
(21
|
%)
|
|
|
Net interest
|
|
|
111
|
|
|
|
204
|
|
|
|
(155
|
)
|
|
(46
|
%)
|
|
*
|
|
|
500
|
|
|
|
(374
|
)
|
|
*
|
|
|
Net revenues
|
|
|
7,932
|
|
|
|
8,503
|
|
|
|
5,280
|
|
|
(7
|
%)
|
|
50
|
%
|
|
|
24,593
|
|
|
|
19,146
|
|
|
28
|
%
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
3,968
|
|
|
|
4,105
|
|
|
|
3,928
|
|
|
(3
|
%)
|
|
1
|
%
|
|
|
12,289
|
|
|
|
11,989
|
|
|
3
|
%
|
|
|
Non-compensation expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy and equipment
|
|
|
375
|
|
|
|
377
|
|
|
|
386
|
|
|
(1
|
%)
|
|
(3
|
%)
|
|
|
1,131
|
|
|
|
1,152
|
|
|
(2
|
%)
|
|
|
Brokerage, clearing and exchange fees
|
|
|
416
|
|
|
|
456
|
|
|
|
359
|
|
|
(9
|
%)
|
|
16
|
%
|
|
|
1,300
|
|
|
|
1,167
|
|
|
11
|
%
|
|
|
Information processing and communications
|
|
|
405
|
|
|
|
470
|
|
|
|
493
|
|
|
(14
|
%)
|
|
(18
|
%)
|
|
|
1,323
|
|
|
|
1,439
|
|
|
(8
|
%)
|
|
|
Marketing and business development
|
|
|
151
|
|
|
|
163
|
|
|
|
138
|
|
|
(7
|
%)
|
|
9
|
%
|
|
|
448
|
|
|
|
439
|
|
|
2
|
%
|
|
|
Professional services
|
|
|
449
|
|
|
|
458
|
|
|
|
476
|
|
|
(2
|
%)
|
|
(6
|
%)
|
|
|
1,347
|
|
|
|
1,365
|
|
|
(1
|
%)
|
|
|
Other
|
|
|
829
|
|
|
|
699
|
|
|
|
983
|
|
|
19
|
%
|
|
(16
|
%)
|
|
|
2,059
|
|
|
|
1,939
|
|
|
6
|
%
|
|
|
Total non-compensation expenses
|
|
|
2,625
|
|
|
|
2,623
|
|
|
|
2,835
|
|
|
--
|
|
|
(7
|
%)
|
|
|
7,608
|
|
|
|
7,501
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expenses
|
|
|
6,593
|
|
|
|
6,728
|
|
|
|
6,763
|
|
|
(2
|
%)
|
|
(3
|
%)
|
|
|
19,897
|
|
|
|
19,490
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before taxes
|
|
|
1,339
|
|
|
|
1,775
|
|
|
|
(1,483
|
)
|
|
(25
|
%)
|
|
*
|
|
|
4,696
|
|
|
|
(344
|
)
|
|
*
|
|
|
Income tax provision / (benefit) from continuing operations
|
|
|
339
|
|
|
|
555
|
|
|
|
(525
|
)
|
|
(39
|
%)
|
|
*
|
|
|
1,226
|
|
|
|
(247
|
)
|
|
*
|
|
|
Income (loss) from continuing operations
|
|
|
1,000
|
|
|
|
1,220
|
|
|
|
(958
|
)
|
|
(18
|
%)
|
|
*
|
|
|
3,470
|
|
|
|
(97
|
)
|
|
*
|
|
|
Gain (loss) from discontinued operations after tax
|
|
|
18
|
|
|
|
(29
|
)
|
|
|
2
|
|
|
*
|
|
*
|
|
|
(30
|
)
|
|
|
25
|
|
|
*
|
|
|
Net income (loss)
|
|
$
|
1,018
|
|
|
$
|
1,191
|
|
|
$
|
(956
|
)
|
|
(15
|
%)
|
|
*
|
|
$
|
3,440
|
|
|
$
|
(72
|
)
|
|
*
|
|
|
Net income applicable to redeemable noncontrolling interests
|
|
|
0
|
|
|
|
100
|
|
|
|
8
|
|
|
*
|
|
*
|
|
|
222
|
|
|
|
8
|
|
|
*
|
|
|
Net income applicable to nonredeemable noncontrolling interests
|
|
|
112
|
|
|
|
111
|
|
|
|
59
|
|
|
1
|
%
|
|
90
|
%
|
|
|
370
|
|
|
|
446
|
|
|
(17
|
%)
|
|
|
Net income (loss) applicable to Morgan Stanley
|
|
|
906
|
|
|
|
980
|
|
|
|
(1,023
|
)
|
|
(8
|
%)
|
|
*
|
|
|
2,848
|
|
|
|
(526
|
)
|
|
*
|
|
|
Preferred stock dividend / Other
|
|
|
26
|
|
|
|
177
|
|
|
|
24
|
|
|
(85
|
%)
|
|
8
|
%
|
|
|
229
|
|
|
|
73
|
|
|
*
|
|
|
Earnings (loss) applicable to Morgan Stanley common shareholders
|
|
$
|
880
|
|
|
$
|
803
|
|
|
$
|
(1,047
|
)
|
|
10
|
%
|
|
*
|
|
$
|
2,619
|
|
|
$
|
(599
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts applicable to Morgan Stanley:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
888
|
|
|
|
1,009
|
|
|
|
(1,008
|
)
|
|
(12
|
%)
|
|
*
|
|
|
2,878
|
|
|
|
(525
|
)
|
|
*
|
|
|
Gain (loss) from discontinued operations after tax
|
|
|
18
|
|
|
|
(29
|
)
|
|
|
(15
|
)
|
|
*
|
|
*
|
|
|
(30
|
)
|
|
|
(1
|
)
|
|
*
|
|
|
Net income (loss) applicable to Morgan Stanley
|
|
$
|
906
|
|
|
$
|
980
|
|
|
$
|
(1,023
|
)
|
|
(8
|
%)
|
|
*
|
|
$
|
2,848
|
|
|
$
|
(526
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit margin
|
|
|
17
|
%
|
|
|
21
|
%
|
|
*
|
|
|
|
|
|
|
19
|
%
|
|
*
|
|
|
|
|
Compensation and benefits as a % of net revenues
|
|
|
50
|
%
|
|
|
48
|
%
|
|
|
74
|
%
|
|
|
|
|
|
|
50
|
%
|
|
|
63
|
%
|
|
|
|
|
Non-compensation expenses as a % of net revenues
|
|
|
33
|
%
|
|
|
31
|
%
|
|
|
54
|
%
|
|
|
|
|
|
|
31
|
%
|
|
|
39
|
%
|
|
|
|
|
Effective tax rate from continuing operations
|
|
|
25.3
|
%
|
|
|
31.3
|
%
|
|
|
35.4
|
%
|
|
|
|
|
|
|
26.1
|
%
|
|
|
71.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
- Pre-tax profit margin is a non-GAAP financial measure that the
Firm considers to be a useful measure to assess operating
performance.
|
|
|
|
- The quarter ended September 30, 2013 includes a discrete net tax
benefit of $73 million that is attributable to tax planning
strategies to optimize foreign tax credit utilization as a result
of the anticipated repatriation of earnings from certain non-U.S.
subsidiaries.
|
|
|
|
- The quarter ended September 30, 2012 included an out-of-period
net income tax provision of approximately $82 million, primarily
related to the overstatement of tax benefits associated with
repatriated earnings of a foreign subsidiary in 2010.
|
|
|
|
- Preferred stock dividend / other includes allocation of earnings
to Participating Restricted Stock Units (RSUs). In the quarter
ended June 30, 2013 and nine months ended September 30, 2013, the
Firm recorded a negative adjustment of approximately $151 million
related to the purchase of the remaining interest in the Morgan
Stanley Smith Barney Joint Venture. This adjustment negatively
impacted the calculation of basic and fully diluted earnings per
share.
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
MORGAN STANLEY
|
|
|
Quarterly Earnings Per Share
|
|
|
(unaudited, dollars in millions, except for per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Percentage Change From:
|
|
Nine Months Ended
|
|
Percentage
|
|
|
|
|
Sept 30, 2013
|
|
June 30, 2013
|
|
Sept 30, 2012
|
|
June 30, 2013
|
|
Sept 30, 2012
|
|
Sept 30, 2013
|
|
Sept 30, 2012
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
1,000
|
|
$
|
1,220
|
|
|
$
|
(958
|
)
|
|
(18
|
%)
|
|
*
|
|
$
|
3,470
|
|
|
$
|
(97
|
)
|
|
*
|
|
|
Net income applicable to redeemable noncontrolling interests
|
|
|
0
|
|
|
100
|
|
|
|
8
|
|
|
*
|
|
*
|
|
|
222
|
|
|
|
8
|
|
|
*
|
|
|
Net income applicable to nonredeemable noncontrolling interests
|
|
|
112
|
|
|
111
|
|
|
|
42
|
|
|
1
|
%
|
|
168
|
%
|
|
|
370
|
|
|
|
420
|
|
|
(12
|
%)
|
|
|
Net income (loss) from continuing operations applicable to
noncontrolling interests
|
|
|
112
|
|
|
211
|
|
|
|
50
|
|
|
(47
|
%)
|
|
124
|
%
|
|
|
592
|
|
|
|
428
|
|
|
38
|
%
|
|
|
Income (loss) from continuing operations applicable to Morgan
Stanley
|
|
|
888
|
|
|
1,009
|
|
|
|
(1,008
|
)
|
|
(12
|
%)
|
|
*
|
|
|
2,878
|
|
|
|
(525
|
)
|
|
*
|
|
|
Less: Preferred Dividends
|
|
|
24
|
|
|
24
|
|
|
|
24
|
|
|
--
|
|
|
--
|
|
|
|
72
|
|
|
|
72
|
|
|
--
|
|
|
|
Less: Morgan Stanley Smith Barney Joint Venture Redemption Adjustment
|
|
|
-
|
|
|
151
|
|
|
|
-
|
|
|
*
|
|
--
|
|
|
|
151
|
|
|
|
-
|
|
|
*
|
|
|
Income from continuing operations applicable to Morgan Stanley,
prior to allocation of income to Participating Restricted Stock Units
|
|
|
864
|
|
|
834
|
|
|
|
(1,032
|
)
|
|
4
|
%
|
|
*
|
|
|
2,655
|
|
|
|
(597
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Allocation of earnings to Participating Restricted Stock Units
|
|
|
2
|
|
|
2
|
|
|
|
0
|
|
|
--
|
|
|
*
|
|
|
6
|
|
|
|
1
|
|
|
*
|
|
|
Earnings (loss) from continuing operations applicable to Morgan
Stanley common shareholders
|
|
$
|
862
|
|
$
|
832
|
|
|
$
|
(1,032
|
)
|
|
4
|
%
|
|
*
|
|
$
|
2,649
|
|
|
$
|
(598
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) from discontinued operations after tax
|
|
|
18
|
|
|
(29
|
)
|
|
|
2
|
|
|
*
|
|
*
|
|
|
(30
|
)
|
|
|
25
|
|
|
*
|
|
|
Less: Gain (loss) from discontinued operations after tax applicable
to noncontrolling interests
|
|
|
0
|
|
|
0
|
|
|
|
17
|
|
|
--
|
|
|
*
|
|
|
0
|
|
|
|
26
|
|
|
*
|
|
|
Gain (loss) from discontinued operations after tax applicable to
Morgan Stanley
|
|
|
18
|
|
|
(29
|
)
|
|
|
(15
|
)
|
|
*
|
|
*
|
|
|
(30
|
)
|
|
|
(1
|
)
|
|
*
|
|
|
Less: Allocation of earnings to Participating Restricted Stock Units
|
|
|
0
|
|
|
0
|
|
|
|
0
|
|
|
--
|
|
|
--
|
|
|
|
0
|
|
|
|
0
|
|
|
--
|
|
|
|
Earnings (loss) from discontinued operations applicable to Morgan
Stanley common shareholders
|
|
|
18
|
|
|
(29
|
)
|
|
|
(15
|
)
|
|
*
|
|
*
|
|
|
(30
|
)
|
|
|
(1
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) applicable to Morgan Stanley common shareholders
|
|
$
|
880
|
|
$
|
803
|
|
|
$
|
(1,047
|
)
|
|
10
|
%
|
|
*
|
|
$
|
2,619
|
|
|
$
|
(599
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average basic common shares outstanding (millions)
|
|
|
1,909
|
|
|
1,908
|
|
|
|
1,889
|
|
|
--
|
|
|
1
|
%
|
|
|
1,906
|
|
|
|
1,884
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per basic share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.45
|
|
$
|
0.44
|
|
|
$
|
(0.55
|
)
|
|
2
|
%
|
|
*
|
|
$
|
1.39
|
|
|
$
|
(0.32
|
)
|
|
*
|
|
|
Discontinued operations
|
|
$
|
0.01
|
|
$
|
(0.02
|
)
|
|
$
|
-
|
|
|
*
|
|
*
|
|
$
|
(0.02
|
)
|
|
$
|
-
|
|
|
*
|
|
|
Earnings per basic share
|
|
$
|
0.46
|
|
$
|
0.42
|
|
|
$
|
(0.55
|
)
|
|
10
|
%
|
|
*
|
|
$
|
1.37
|
|
|
$
|
(0.32
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations applicable to Morgan
Stanley common shareholders
|
|
$
|
862
|
|
$
|
832
|
|
|
$
|
(1,032
|
)
|
|
4
|
%
|
|
*
|
|
$
|
2,649
|
|
|
$
|
(598
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from discontinued operations applicable to Morgan
Stanley common shareholders
|
|
|
18
|
|
|
(29
|
)
|
|
|
(15
|
)
|
|
*
|
|
*
|
|
|
(30
|
)
|
|
|
(1
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) applicable to Morgan Stanley common shareholders
|
|
$
|
880
|
|
$
|
803
|
|
|
$
|
(1,047
|
)
|
|
10
|
%
|
|
*
|
|
$
|
2,619
|
|
|
$
|
(599
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding and common stock
equivalents (millions)
|
|
|
1,965
|
|
|
1,951
|
|
|
|
1,889
|
|
|
1
|
%
|
|
4
|
%
|
|
|
1,952
|
|
|
|
1,884
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.44
|
|
$
|
0.43
|
|
|
$
|
(0.55
|
)
|
|
2
|
%
|
|
*
|
|
$
|
1.36
|
|
|
$
|
(0.32
|
)
|
|
*
|
|
|
Discontinued operations
|
|
$
|
0.01
|
|
$
|
(0.02
|
)
|
|
$
|
-
|
|
|
*
|
|
*
|
|
$
|
(0.02
|
)
|
|
$
|
-
|
|
|
*
|
|
|
Earnings per diluted share
|
|
$
|
0.45
|
|
$
|
0.41
|
|
|
$
|
(0.55
|
)
|
|
10
|
%
|
|
*
|
|
$
|
1.34
|
|
|
$
|
(0.32
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
- The Firm calculates earnings per share using the two-class
method as described under the accounting guidance for earnings per
share. For further discussion of the Firm's earnings per share
calculations, see page 14 of the financial supplement and Note 15
to the consolidated financial statements in the Firm's Quarterly
Report on Form 10-Q for the quarter ended June 30, 2013.
|
|
|
|
|
|
13
|
|
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|
Copyright Business Wire 2013