Morgan Stanley MS Earnings Q4 2022

A screen shows trading information for Morgan Stanley on the floor of the New York Stock Exchange (NYSE) on January 19, 2022.

Brendan McDermidt | Reuters

Morgan Stanley reported Fourth Quarter Earnings Wall Street beat expectations on Tuesday, boosted by record earnings from bank asset management.

Shares of the company rose more than 1% in premarket trading following the results.

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, from $3.59 billion, or $2.01 per share, a year earlier. After adjustments, Morgan Stanley said it earned $1.31 per share.

The firm’s wealth management reported net income of $6.63 billion in the latest quarter, up 6% from a year ago. This resulted in higher interest rates and increased net interest income from bank loan growth, the bank said.

“We reported solid fourth quarter results amid a challenging market environment,” Chairman and CEO James Gorman said in a statement. “Overall, 2022 was a strong year for the company as our clear strategy and consistent business model enabled us to deliver 16% ROTCE despite a challenging macro backdrop.”

The company’s investment banking suffered a major slowdown amid a slump in IPOs and debt and equity issuance. The investment bank’s revenue was $1.25 billion in the fourth quarter, down 49% from a year ago. The bank attributed the decline to a significant decline in global equity underwriting volumes and fewer completed M&A transactions.

Morgan Stanley’s investment management reported revenue of $1.46 billion, a 15% decline from a year ago. The bank’s assets under management shrank to $1.30 trillion from $1.57 trillion last year.

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In the latest period, the bank set aside $85 million for loan losses, up from just $5 million in the same quarter a year ago.

New York based company It cut about 2% of its workforce in December. It affected about 1,600 of the firm’s 81,567 employees and touched every corner of the global investment bank.

Shares of Morgan Stanley are up nearly 8% year to date, following a 13% retreat last year.

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