Morgan Stanley reports mixed financials

Company News

by Glenn Dyer

The 6th US major to report, Morgan Stanley, produced its figures on Tuesday as well. For the quarter ended December 31, 2023, it reported revenue of $US12.9 billion, above Wall Street estimates of $US12.7 billion.

Revenue from investment banking edged up to $US4.8 billion in the year-ago quarter to $4.9 billion.

However, earnings fell thanks to two one-time regulatory charges, $US286 million related to the DIF cost and a $US249 million legal settlement with the SEC. That saw net income fall to $US1.5 billion, compared with $US2.2 billion in the final quarter of 2022.

The settlement with the government was to end years-long investigations into its handling of large stock trades for customers. The bank also took $US405 million in mark-to-market losses on corporate loans, including financing for Elon Musk's purchase of Twitter, the bank's Chief Financial Officer Sharon Yeshaya told Reuters.

For the full year, Morgan Stanley reported revenues of $US54.1 billion, up from $US53.7 billion for the previous year but above estimates of $US53.4 billion. Net earnings for the year fell to $US9.1 billion from $US11 billion in 2022.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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