Morgan Stanley(MS) - 2024 Q2 - Quarterly Results

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]