Morgan Stanley Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Tax Rate Guidance for the Year 2018
January 18, 2018 at 06:45 pm IST
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Morgan Stanley reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net revenues of $9,500 million compared to $9,021 million a year ago. Income from continuing operations before taxes were of $2,471 million compared to $2,246 million a year ago. Income from continuing operations were of $704 million compared to $1,680 million a year ago. Net income applicable to company was $686 million compared to $1,666 million a year ago. Net income applicable to the common shareholders was of $516 million compared to $1,509 million a year ago. Diluted earnings per share were $0.29 compared to $0.81 a year ago. Adjusted net income applicable to company was $1,676 million compared to $1,531 million a year ago. Adjusted diluted earnings per share were $0.84 compared to $0.74 a year ago. Return on average common equity was 2.9% compared to 8.7% a year ago.
For the year, the company reported net revenues of $37,945 million compared to $34,631 million a year ago. Income from continuing operations before taxes were of $10,403 million compared to $8,848 million a year ago. Income from continuing operations were of $6,278 million compared to $6,122 million a year ago. Net income applicable to company was $6,154 million compared to $5,979 million a year ago. Net income applicable to the common shareholders was of $5,631 million compared to $5,508 million a year ago. Diluted earnings per share were $3.09 compared to $2.92 a year ago. Adjusted net income applicable to company was $7,079 million compared to $5,911 million a year ago. Adjusted diluted earnings per share were $3.60 compared to $2.88 a year ago. Return on average common equity was 8.1% compared to 8.0% a year ago. At December 31, 2017, book value and tangible book value per common share were $38.54 and $33.48, respectively, based on approximately 1.8 billion shares outstanding.
In 2018, The company expects tax rate to be reduced to 22% to 25% for the full year while exhibiting quarter-to-quarter volatility.
Morgan Stanley is a financial services group. Income (including intragroup) breaks down by activity as follows:
- investment and finance banking (45%): specialized financing (acquisitions, projects, etc.), operations on the stock, interest, exchange, and raw materials markets, share trading transactions, merger-acquisition consulting, etc.;
- wealth management (45%);
- assets management (10%): USD 1,305 billion asset under management at the end of 2022.
Income is distributed geographically as follows: Americas (74.7%), Europe/Middle East/Africa (12.7%) and Asia (12.6%).
Morgan Stanley Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Tax Rate Guidance for the Year 2018