Morgan Stanley MS earnings Q4 2022

Morgan Stanley reported fourth-quarter earnings on Tuesday that exceeded Wall Street expectations, boosted by the bank’s record revenues from wealth management.

Here’s what the bank did:

• Earnings: $1.31 a share, adjusted
• Revenue: $12.75 billion, versus $12.64 billion, according to Refinitiv

In the fourth quarter, Morgan Stanley’s net income fell to $2.11 billion, or $1.26 per share, from $3.59 billion, or $2.01 per share, a year ago. After adjustments, Morgan Stanley said it earned $1.31 per share.

The bank’s wealth management reported record net revenues of $24.4 billion for the full year, compared with $24.2 billion in the prior year. The result was helped by an increase in net interest income on higher interest rates and bank lending growth, the bank said.

“We reported solid fourth quarter results amidst a difficult market environment,” Chairman and CEO James Gorman said in a statement.

Morgan Stanley’s investment banking, trading and investment management operations were impacted by the extreme volatility last quarter. Wall Street banks are grappling with the collapse in IPOs and debt and equity issuance amid the market turmoil driven by the Federal Reserve’s aggressive rate hikes.

The New York-based firm cut about 2% of its staff in December, which impacted about 1,600 of the company’s 81,567 employees and touched nearly every corner of the global investment bank.

Shares of Morgan Stanley have climbed nearly 8% year to date following a 13% pullback last year.

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