Morgan Stanley Q3 income misses, harm by funding banking, investing outcomes (NYSE:MS)

Morgan Stanley (NYSE:MS) Q3 earnings elevated from Q2, exceeding the typical analyst estimate, because the financial institution’s non-compensation bills dropped from the prior quarter, in line with outcomes issued Friday. Income, although, fell in need of expectations as unstable markets damped funding banking and investing exercise.

Morgan Stanley (MS) slipped 0.6% in premarket buying and selling.

“Whereas Funding Banking and Funding Administration have been impacted by the market atmosphere, Fastened Revenue and Fairness navigated difficult markets properly,” mentioned Chairman and CEO James Gorman. “We proceed to take care of our sturdy capital place whereas repurchasing $2.6B of shares and distributing a wholesome dividend.”

Q3 adjusted EPS of $1.53, topping the $1.51 consensus, rose from $1.44 in Q2 and fell from $2.04 in Q3 2021.

Web income of $13.0B, trailing the typical analyst estimate of $13.3B, slipped from $13.1B in Q2 and from $14.8B in Q3 2021.

Return on tangible fairness of 14.6% vs. 13.8% in Q2 and 19.6% within the year-ago quarter.

Q3 web curiosity earnings of $2.51B rose 10% Q/Q and 22% Y/Y.

Q3 whole noninterest income of $10.5B fell 3% from the prior quarter and by 17% from the year-ago quarter.

Income by section:

• Funding Banking — $1.37B, +19% Q/Q and -54% Y/Y;
• Buying and selling — $3.33B, -7% Q/Q and +16% Y/Y;
• Investments — -$168M in contrast with $23M in Q2 and $45M within the year-ago interval;
• Commissions and costs — $1.13B, -7% Q/Q and -11% Y/Y;
• Asset Administration — $4.74B, -3% Q/Q and -9% Y/Y.

Provision for credit score losses of $35M vs. $101M within the prior quarter and $24M within the year-ago quarter.

Compensation bills of $5.61B vs. $5.55B in Q2 and $5.92B in Q3 2021.

Whole non-compensation bills of $3.95B vs. $4.16B in Q2 and $3.94B in Q3 2021.

Convention name at 9:30 AM ET.

Earlier, Morgan Stanley (MS) non-GAAP EPS of $1.53 by $0.02, income of $12.99B misses by $320M