Morgan Stanley Reports Net Revenues of $10.2 Billion and EPS of $1.23
NEW YORK, July 18, 2019 – Morgan Stanley (NYSE: MS) today reported net revenues of $10.2 billion for the second quarter ended June 30, 2019 compared with $10.6 billion a year ago. Net income applicable to Morgan Stanley was $2.2 billion, or $1.23 per diluted share,1 compared with net income of $2.4 billion, or $1.30 per diluted share,1 for the same period a year ago.
James P. Gorman, Chairman and Chief Executive Officer, said, “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.”

Highlights
• Strong net revenues, exceeding $10 billion for four out of
the last six quarters.3
• Firm expenses decreased on continued disciplined
expense management and the impact of lower revenues.
• ROE of 12.1%4 and ROTCE of 13.8%4 for the first half of
2019 remain in line with our target ranges.
• Quarterly dividend increased to $0.35 per share;5
announced share repurchase of up to $6.0 billion through
the second quarter of 2020, an increase of approximately
$1.3 billion.5
• Institutional Securities reflects solid performance despite a
mixed market backdrop.
• Wealth Management delivered record pre-tax income of
$1.2 billion6 with a pre-tax margin of 28.2%7 reflecting
record quarterly net revenues and tightly managed noncompensation
costs.
• Investment Management net revenues increased 21% on
strong principal investment gains. The quarter reflects
higher AUM and positive long-term net flows across all
asset classes.

Firm 2Q 2019 Q2018
Net revenues $10,244 $10,610
Compensation expense $4,531 $4,621
Non-compensation expenses $2,810 $2,880
Pre-tax income6 $2,903 $3,109
Net income app. to MS $2,201 $2,437
Expense efficiency ratio8 72% 71%
Earnings per diluted share $1.23 $1.30
Book value per share9 $44.13 $40.34
Tangible book value per share10 $38.44 $35.19
Return on equity4 11.2% 13.0%
Return on tangible equity4 12.8% 14.9%
Institutional Securities
Net revenues $5,113 $5,714
Investment Banking $1,472 $1,699
Sales & Trading $3,304 $3,758
Wealth Management
Net revenues $4,408 $4,325
Fee-based client assets ($ billions)11 $1,159 $1,084
Fee-based asset flows ($ billions)12 $9.8 $15.3
Loans ($ billions) $74.1 $70.0
Investment Management
Net revenues $839 $691
AUM ($ billions)13 $497 $474
Long-term net flows ($ billions)14 $4.9 $3.5

see & read more on
https://www.morganstanley.com/about-us-ir/shareholder/2q2019.pdf