We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Bank of America Corporation | NYSE:BAC | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.08 | 0.22% | 37.09 | 37.505 | 36.77 | 37.21 | 32,276,062 | 00:59:21 |
By Saabira Chaudhuri
Morgan Stanley's fourth-quarter profit surged as the firm bounced back from a year-earlier period that was weighed down by large legal charges, but its revenue was hit by the same trading slowdown that hammered rivals last week.
Shares dropped 2.9% in recent premarket trading as results missed analyst estimates.
The bank reported a profit of $1.04 billion compared with a year-earlier profit of $84 million. Stripping out one-time items and accounting adjustments, profits were down at 39 cents from 50 cents a year earlier. Analysts polled by Thomson Reuters had expected adjusted earnings of 48 cents a share.
Among other items, the latest quarter's results include a tax gain of $1.4 billion and a compensation expense of $1.1 billion, while the year-earlier quarter included a pretax legal expense of $1.2 billion.
Revenue fell 1% to $7.76 billion, while revenue excluding accounting adjustments dropped 8.2% to $7.54 billion, coming in below analyst estimates for $8.08 billion.
Revenue from equities trading, an important profit driver for Morgan Stanley, rose to $1.6 billion from $1.5 billion a year earlier, but came in lower than what rival Goldman Sachs Group Inc. reported on Friday.
Morgan Stanley also joined Goldman, Citigroup Inc., Bank of America Corp. and J.P. Morgan Chase & Co. in posting lower revenue from fixed income, currencies and commodities trading, or "FICC", a business that has seen difficult trading conditions, walloping profits across Wall Street. Morgan Stanley's adjusted FICC revenue came in at roughly $599 million, down 14% from a year earlier.
Ahead of the firm's earnings report, Macquarie analyst David Konrad noted that Morgan Stanley--whose deal to sell its oil-trading and storage business to Russia's OAO Rosneft fell through last month--stands particularly exposed to gyrations in the commodities markets.
The firm's more stable wealth management business turned in stronger results. Revenue in that division rose 2.4% from a year earlier and edged up 0.8% from the prior quarter to $3.8 billion.
The wealth management unit's pretax profit margins, a closely watched efficiency metric, was 19% in the fourth quarter, flat with a year earlier and down from 22% reported in the third quarter. Morgan Stanley had previously said it is targeting a pretax profit margin of 22% to 25% by the end of this year.
Morgan Stanley logged lower expenses during the quarter, despite a 28% rise in compensation costs, part of which comes from its decision to start paying out a bigger slice of employees' bonuses immediately and to speed up the vesting period for certain cash deferrals.
Overall, noninterest expense was $7.9 billion, down 2% from the year earlier but up 18% from the third quarter.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
Access Investor Kit for Bank of America Corp.
Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US0605051046
Access Investor Kit for Citigroup, Inc.
Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US1729674242
Access Investor Kit for The Goldman Sachs Group, Inc.
Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US38141G1040
Access Investor Kit for JPMorgan Chase & Co.
Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US46625H1005
Access Investor Kit for Morgan Stanley
Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US6174464486
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
1 Year Bank of America Chart |
1 Month Bank of America Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions