Morgan Stanley (MS) reported first-quarter income from continuing operations applicable to shareholders of $1.45 billion, or $0.72 per share, compared to $936 million, or $0.49 per share, a year ago. Results for the current quarter included positive revenue related to changes in Morgan Stanley's debt-related credit spreads and other credit factors (Debt Valuation Adjustment, DVA) of $126 million, compared with negative revenue of $317 million a year ago.
Excluding DVA, income from continuing operations applicable to Morgan Stanley was $1.4 billion, or $0.68 per share, compared with income of $1.2 billion, or $0.60 per share, a year ago.
On average, 25 analysts polled by Thomson Reuters expected the company to report profit per share of $0.60 for the quarter. Analysts' estimates typically exclude special items.
Net income applicable to Morgan Stanley, including discontinued operations, was $0.74 per share, compared with $0.48 per share in the first quarter of prior year.
Consolidated net revenues increased to $8.93 billion from $8.15 billion. Excluding DVA, net revenues for the current quarter were $8.8 billion compared with $8.5 billion a year ago. Analysts expected revenue of $8.52 billion for the quarter.
James Gorman, CEO of Morgan Stanley said, "This quarter we generated higher year-over-year revenues in all three of our business segments, demonstrating the momentum we have built across the Firm. We continue to execute on our multi-year strategy to deliver consistent returns for our shareholders through revenue growth and strong expense discipline. We are pleased that this year we will commence a further share repurchase of up to $1 billion and double our dividend."
Morgan Stanley increased its quarterly dividend to $0.10 per share from $0.05 per share, payable on May 15, 2014 to common shareholders of record on April 30, 2014.
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