Estated Blog

Browse by topic:

More from Estated

Morgan Stanley Q1 Earnings Call Breakdown

On the 20th of January, 2021, Morgan Stanley reports its fourth quarter and full year's earnings results. 

The multinational financial services provider has procured Return on Average Tangible Common Shareholders' Equity (ROTCE) of 17.7%, and a $13.6 billion net revenue, $1.81 EPS in its fourth quarter. Whereas Morgan's full years' net earnings were $48.2 Billion, EPS of $6.46, and ROTCE was 15.2%.

This US-based investment bank had a net profit of 19.16% and a return on equity of 12.33% in Q4, 2020. It has overshadowed the quarterly revenue by $2.11 billion, as forecasted by the analysts. The business quarterly revenue rose 25.6% on a year-over-year (YOY) basis. In the current year, Morgan's shares have started at $74.84. Furthermore, the firm's debt-to-equity ratio is 2.50; its current ratio is 0.76, and its quick ratio is 0.76.

Headquartered in New York City, Morgan Stanley has branches above 42 countries with over 60,000 employees worldwide. It has been listed on the New York Stock Exchange with a market capitalization of $121 billion.

Morgan Stanley serves different financial products and services to enterprises, governments, commercial banks, and individuals in the United States of America, Europe, the Middle East, Africa, and Asia. The firm primarily works in divisions like Investment Management, Wealth Management, and Institutional Securities. In 2018, Morgan acquired the 67th position in Fortune 500 list among the most prominent US banks by turnover. Some of Stanley's top competitors are Credit Suisse, Bank of America, Goldman Sachs, Citi Group, etc.

In the year 2020, the Institutional Services generated a full year output of $25.9 billion in total income, and the fourth-quarter net revenues were up by 39%. The Wealth Management achieved a 23.0% full-year pretax margin (24.2% excluding $231 million of integration-associated costs).

Morgan's Q4 outcomes reflect an increase in bank deposits, progress in customer properties, and using lending as a powerful transaction practice. Additionally, the Investment Management has also shown a strong record in the asset management rates with $781 billion, including the full year and the quarterly incomes.

In his statement, Chairman and Chief Executive Officer of Morgan Stanley, James P. Gorman, has expressed his gratitude to his employees for working hard and delivering the best services irrespective of the unstable economy of 2020. Morgan's unique business model will continue to carry the long-term plans with E*TRADE and Eaton Vance takeovers.

With its competitive position and continued growth prospects, the Morgan group enters 2021 with substantial force.

Discuss this article.