Morgan Stanley Reports Third Quarter 2012:
? Net Revenues of $5.3 Billion Included the Negative Impact of $2.3 Billion from the
Tightening of Morgan Stanley’s Debt-Related Credit Spreads (DVA);1 Loss from
Continuing Operations of $0.55 per Diluted Share
? Excluding DVA, Net Revenues were $7.6 Billion and Income from Continuing
Operations was $0.28 per Diluted Share2, 3
? Strength in Fixed Income & Commodities Sales and Trading; Ranked #1 in Global
IPOs, #2 in Global Announced M&A and #3 in Global Equity and Increased
Market Share in U.S. Investment Grade Debt; Global Wealth Management 7%
Pre-Tax Margin and 13% Excluding Non-Recurring Items4, 5
? The Firm Completed the Purchase of an Additional 14% Stake in Morgan Stanley
Smith Barney (Joint Venture)6
NEW YORK, October 18, 2012 – Morgan Stanley (NYSE: MS) today reported net revenues of $5.3 billion for
the third quarter ended September 30, 2012 compared with $9.8 billion a year ago. For the current quarter, the
loss from continuing operations applicable to Morgan Stanley was $1.0 billion, or a loss of $0.55 per diluted
share,7 compared with income of $2.2 billion, or $1.14 per diluted share,7 for the same period a year ago.
Results for the quarter included negative revenue of $2.3 billion compared with positive revenue of $3.4 billion
a year ago related to changes in Morgan Stanley’s debt-related credit spreads and other credit factors (Debt
Valuation Adjustment, DVA).1
Excluding DVA, net revenues for the current quarter were $7.6 billion compared with $6.4 billion a year ago
and income from continuing operations applicable to Morgan Stanley was $561 million, or $0.28 per diluted
share, compared with income of $64 million, or $0.02 a year ago.3, 7, 8
Compensation expense of $3.9 billion increased from $3.6 billion a year ago. Non-compensation expenses of
$2.8 billion increased from $2.5 billion a year ago primarily due to litigation costs reported in Institutional
Securities and non-recurring expenses associated with the Morgan Stanley Wealth Management (MSWM)9
integration.
For the current quarter, the net loss applicable to Morgan Stanley, including discontinued operations, was $0.55
per diluted share, compared with net income of $1.15 per diluted share in the third quarter of 2011.
https://www.morganstanley.com/about/ir/shareholder/3q2012.pdf
3Q 2012 Financial Supplements PDF
https://www.morganstanley.com/about/ir/finsup3q2012/finsup3q2012.pdf
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Analyst Estimates
https://www.marketwatch.com/investing/stock/ms/analystestimates