Morgan Stanley (NYSE:MS) came out with fourth-quarter figures Thursday.
The financial house reported net revenues of $8.5 billion for the fourth quarter ended December 31, 2018 compared with $9.5 billion a year ago. For the current quarter, net income applicable to Morgan Stanley was $1.5 billion, or $0.80 per diluted share, compared with net income of $643 million, or $0.26 per diluted share for the same period a year ago.
In the current quarter, the company recorded an intermittent net discrete tax benefit of $111 million, or $0.07 per diluted share, primarily associated with new information pertaining to the resolution of multi-jurisdiction tax examinations. The prior year fourth quarter included an intermittent net discrete tax provision of $1.0 billion, or a loss of $0.58 per diluted share, primarily related to the enactment of the Tax Cuts and Jobs Act.
CEO James Gorman said, "In 2018 we achieved record revenues and earnings, and growth across each of our business segments – despite a challenging fourth quarter. We delivered higher annual returns, producing an ROE of 11.8% and ROTCE of 13.5%, as we continued to invest in our businesses.
"While the global environment remains uncertain, our franchise is strong and we are well positioned to pursue growth opportunities and serve our clients."
Wealth Management net revenues were $4.1 billion with a pre-tax margin of 24.4% Results reflect the difficult environment, seasonality and certain compensation-related items. Investment Management net revenues were $684 million with Assets Under Management of $463 billion.
Shares dropped $2.22, or 5%, to $42.27
