Morgan Stanley reports mixed Q2 2022 earnings results

Morgan Stanley (NYSE: MS) has announced its Q2 2022 earnings results that missed estimates. The Company reported earnings of $1.44 per share, missing analysts’ estimates of $1.57 per share.

Revenue was $13.1 billion in Q2 2022

Revenue in the second quarter was $13.1 billion compared to consensus estimates of $13.39 billion. A year ago, the Company reported revenue of $14.1 billion. Net income applicable to the Company’s shareholders was $2.5 billion or $1.39 per share relative to net income of $3.5 billion or $1.85 for each diluted share.

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Chairman and CEO James Gorman said:

Overall the Firm delivered a solid quarter in what was a more volatile market environment than we have seen for some time. Strong equity and fixed income results helped partially counter weaker investment banking activity. We continue to attract positive flows across our Wealth Management business, and Investment Management continues to benefit from its diversification.

 The strong revenue was attributable to the Company’s diversified franchise, a business steered through a challenging environment. Institutional securities revenue was $6.1 billion versus $7.1 billion, with pre-tax income of $1.6 billion relative to $2.5 billion in the same quarter a year ago. The Wealth Management segment generated net revenue of $5.7 billion relative to $6.1 billion a year ago, with asset management revenues increasing 2% while transaction revenues dropped 17%. The

The Investment Management segment posted revenue of $1.4 billion versus $1.7 billion in Q2 2021. Asset management and associated fees dropped from a year ago due to low AUM, mainly because of the decline in equity markets.

Morgan Stanley completed, a $12 billion share repurchase

The Company completed its $12 billion share buyback program during the quarter by repurchasing $2.7 billion worth of its outstanding ordinary shares. Also, Morgan Stanley confirmed a multi-year share repurchase approval of around $20 billion of its outstanding common shares without a specific expiry date. 

The Morgan Stanley Board of Directors announced a quarterly dividend of $0.775 per share, which is an 11% increase from the current $0.7 per share. The dividend will be payable on August 15, 2022, to shareholders that will be on record as of July 29, 2022.