7/18/2019, 1:32 PM (Source: TeleTrader)
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Morgan Stanley EPS falls 5.4% to $1.23 in Q2

Morgan Stanley said on Thursday that its earnings per diluted share (EPS) in the second quarter of 2019 stood at $1.23, dropping by 5.38% from $1.30 in the same period in 2018. Net revenues also declined year-over-year, from $10.6 billion in the second quarter of last year to $10.24 billion in the last reported quarter. Return on equity was 11.2%, lower from a year ago when it was 13%.

In the three months through June 30 this year, net income applicable to Morgan Stanley went down from $2.43 to $2.2 billion on an annualized basis. Compensation expenses also decreased, from $4.62 billion to $4.53 billion in the quarter, the financial results showed. Wealth management and investment management upped their net revenues to $4.41 billion and $839 million, respectively, while institutional securities division saw a drop of over 10%.

CEO James Gorman noted: "We reported solid quarterly results across all our businesses. Firmwide revenues were over $10 billion and we produced an ROE within our target range, demonstrating the stability of our franchise. We remain focused on serving our clients and pursuing growth opportunities while diligently managing expenses."

Stocks were slightly rising in premarket trade following the results, up by 0.18% at 7:40 am ET.

Breaking the News / NI