Q2 2024 Morgan Stanley Earnings Call Transcript
Key Points
- Morgan Stanley (MS) generated $15 billion in revenue and $1.82 in EPS for the second quarter of 2024.
- Institutional securities revenues increased by 50% year over year, with a notable 70% rise in fixed income underwriting.
- Wealth management posted strong margins of 27% and grew total client assets to $7.2 trillion.
- The firm announced a dividend increase for the third consecutive year, reflecting durable earnings growth.
- Morgan Stanley (MS) maintained a strong capital position with a CET1 ratio of 15.2%, providing flexibility for dividend growth and stock buybacks.
- Net interest income (NII) faced challenges, with potential declines expected in the third quarter.
- Transactional revenues in wealth management were impacted by seasonal tax payments and increased client spending.
- The firm experienced net charge-offs of $48 million, primarily related to commercial real estate loans.
- Investment banking revenues, while improved, remained below historical averages in some areas.
- The firm faces ongoing geopolitical uncertainties and regulatory expectations that could impact future performance.
Good morning. Welcome to Morgan Stanley's second-quarter 2024 earnings call. On behalf of Morgan Stanley, I will begin the call with the following information and disclaimers. This call is being recorded. During today's presentation, we will refer to our earnings release and financial supplement, copies of which are available at morganstanley.com.
Today's presentation may include forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. Morgan Stanley does not undertake to update the forward-looking statements in this discussion. Please refer to our notices regarding forward-looking statements and non-GAAP measures that appear in the earnings release.
This presentation may not be duplicated or reproduced without our consent.
I will now turn the call over to Chief Executive Officer, Ted Pick.
Good morning and thank you for joining us. The firm generated $15 billion in revenue, $1.82 in EPS, and a 17.5% return on
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