Morgan Stanley(US:MS)2024-11-04 21:10Financial Performance - The firm reported net revenues of $15.4 billion for Q3 2024, a 16% increase from $13.3 billion in Q3 2023[14]. - Net income applicable to Morgan Stanley was $3.2 billion in Q3 2024, up 32% from $2.4 billion in Q3 2023[18]. - Diluted earnings per common share increased by 36% to $1.88 in Q3 2024, compared to $1.38 in Q3 2023[18]. - Net income for the nine months ended September 2024 was $4,902 million, a 50% increase compared to $3,266 million in the prior year period[43]. - Net income applicable to Morgan Stanley for the current quarter was $1,568 million, a 19% increase compared to $1,320 million in the prior year quarter[63]. Wealth Management - Wealth Management added net new assets of $64 billion in Q3 2024, with total client assets reaching $6 trillion[17]. - Wealth Management net revenues for the current quarter were $7,270 million, reflecting a 14% increase from the prior year, primarily due to higher gains on employee deferred cash-based investments[28]. - Total client assets in Wealth Management reached $7,572 billion, an increase from $6,588 billion in the prior year[32]. - Total client assets in Wealth Management reached $5,974 billion as of September 30, 2024, up from $5,129 billion at the end of 2023[64]. - Net new assets (NNA) for the three months ended September 30, 2024, were $63.9 billion, compared to $35.7 billion for the same period in 2023[65]. Institutional Securities - Institutional Securities net revenues were $6.8 billion, driven by strong performance in Equity and Fixed Income[16]. - Institutional Securities net revenues for the current quarter were $6,815 million, an increase of 20% from the prior year period, driven by higher equity results and underwriting revenues[28]. - Asia net revenues increased 31% in the current quarter compared to the prior year, driven by strong results across Institutional Securities and Investment Management[33]. Investment Management - Investment Management reported net revenues of $1.5 billion, with positive long-term net flows of $7 billion and end-of-period AUM of $1.6 trillion[18]. - Investment Management net revenues for the current quarter were $1,455 million, up 9% from the prior year, attributed to higher performance-based revenues[28]. - Total Assets under Management (AUM) increased to $1,598 billion as of September 30, 2024, up from $1,412 billion at the same time last year, representing a growth of 13.1%[95]. Expenses and Efficiency - The firm's expense efficiency ratio was 72% for both Q3 2024 and year-to-date, reflecting disciplined expense management[15]. - Compensation and benefits expenses increased by 13% to $6,733 million in Q3 2024, primarily due to higher employee compensation linked to investment performance[21]. - Non-interest expenses increased 10% to $4,836 million in the current quarter compared to the prior year quarter, driven by higher compensation and benefits expenses[61]. Credit Losses - The provision for credit losses on loans and lending commitments was $79 million in Q3 2024, down from $134 million in the prior year quarter[25]. - Provision for credit losses decreased by 67% to $124 million in the current year period from $379 million in the prior year period, indicating improved credit quality[43]. - The provision for credit losses on loans and lending commitments was $11 million in the current quarter, down from $41 million in the prior year quarter, reflecting improvements in the macroeconomic outlook[73]. Capital and Liquidity - The firm's Standardized Common Equity Tier 1 capital ratio was 15.1% as of September 30, 2024[15]. - The company maintained a Liquidity Coverage Ratio (LCR) of 134% as of September 30, 2024, up from 131% at the end of June 2024, indicating strong liquidity management[121]. - Total capital ratio at September 30, 2024, stands at 16.4%, exceeding the required ratio of 8.0%[157]. Market Environment - The economic environment showed improvement, with inflationary pressures moderating and interest rates declining, although geopolitical risks remain a concern[34]. - The company continues to operate in a market environment with lower completed M&A activity relative to longer-term averages[49]. Shareholder Returns - The company repurchased 8 million shares at an average price of $99.94 per share for a total of $750 million during the three months ended September 30, 2024[142]. - A common stock dividend of $0.925 per share was announced on October 16, 2024, to be paid on November 15, 2024[144].