Morgan Stanley (NYSE:MS) gained Tuesday as earnings topped Wall Street expectations, thanks in part to record wealth management revenue.
The bank reported net revenues of $12.7 billion for the fourth quarter ended December 31, 2022 compared with $14.5 billion a year ago. Net income applicable to Morgan Stanley was $2.2 billion, or $1.26 per diluted share, compared with $3.7 billion, or $2.01 per diluted share, for the same period a year ago. Excluding integration-related expenses, earnings per diluted share in the fourth quarter was $1.31 versus $2.08 in the prior year quarter. The fourth quarter of 2022 was also impacted by severance costs of $133 million associated with a December employee action, 2 partially offset by a net discrete tax benefit of $89 million.
Full year net revenues were $53.7 billion compared with $59.8 billion in the prior year. Net income applicable to Morgan Stanley was $11.0 billion, or $6.15 per diluted share, compared with $15.0 billion, or $8.03 per diluted share, in the prior year. Excluding integration-related expenses, earnings per diluted share in the current year was $6.36 and $8.22 in the prior year. Comparisons of current year results to the prior year were impacted by the acquisition of Eaton Vance Corp. prospectively from the March 1, 2021 acquisition date.
CEO James Gorman said, “Overall, 2022 was a strong year for the Firm as our clear strategy and balanced business model enabled us to deliver an ROTCE of 16% despite the complex macro backdrop.”
MS shares jumped $4.37, or 4.3%, to $95.60.
