Morgan
Stanley posts quarterly profit as costs plunge
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[January 19, 2016]
(Reuters) - Morgan Stanley reported
a fourth-quarter profit, compared with a year-earlier loss, as its legal
costs plunged and compensation expenses fell.
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The Wall Street bank's shares rose about 3.5 percent to $26.85 in
premarket trading on Tuesday.
Morgan Stanley's total non-interest costs fell 41 percent in the
quarter as the bank slashed headcount in its trading business.
"We enter 2016 with a continued focus on managing expenses across
the firm and driving up returns for our shareholders," Chief
Executive James Gorman said in a statement.
Compensation costs fell 28.5 percent to $3.65 billion, including
$155 million in severance charges.

The bank had taken $2.9 billion in after-tax legal costs and a
charge of $781 million related to compensation adjustments in the
year-earlier quarter.
Cost cuts and much smaller legal bills helped Citigroup Inc and
JPMorgan Chase & Co report a rise in quarterly profit last week.
Morgan Stanley's trading revenue rose nearly 1 percent to $1.47
billion.
The bank reported earnings of $753 million, or 39 cents per share,
applicable to common shareholders for the quarter ended Dec. 31
compared with a loss of $1.75 billion, or 91 cents per share, a year
earlier.
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Excluding an accounting adjustment, the bank earned 43 cents per
share.
Analysts on average had estimated earnings of 33 cents per share,
according to Thomson Reuters I/B/E/S.
(Reporting by Richa Naidu and Sudarshan Varadhan; additional
reporting by Olivia Oran; Editing by Kirti Pandey)
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