Tuesday, February 27

Morgan Stanley earnings rise 9% in Q4 2021

Morgan Stanley has presented the results of fourth quarter of 2021 reporting that their Profits increased a 9% up to 3.7 million dollars. However, there was a decrease in trading income according to Charley Grant en The Wall Street Journal.

the bank won $2.01 per share. Analysts had expected $1.94 per share, according to FactSet. The income increased a 7% to 14.5 billion dollars in the quarter, which was just below expectations.

The bank posted record profits throughout the year. Wealthy customers flocked to the bank for help managing their money, and the business market on Wall Street remained active.

The income of the investment banking they grew a 6% in the fourth trimester. the rivals Goldman Sachs, JPMorgan & Co. y Citigroup they also reported gains in investment banking.

The stock and bond trading income they fell a 6% in the fourth trimester. The business income they also fell at Goldman, JPMorgan and Citigroup.

Trade windfalls on Wall Street are slowing as decreases market volatility. Banks are forced to offer highest salaries to get and keep employees in a tight labor market. Goldman, JPMorgan and Citigroup all reported a drop in fourth-quarter earnings, ending a streak of big gains.

The full year compensation expense increased a 18% to $24.6 billion. The banks increased the salaries of the junior bankers on Wall Street in 2021, and companies are also paying to keep top executives. “We feel good that we paid for performance,” said the Morgan Stanley CFO Sharon Yeshaya.

The JPMorgan CEO Jamie Dimon, said last week that his bank would remain competitive in compensating its merchants and bankers, even if that put pressure on profit margins.

Fourth quarter revenue from the division of asset Management they grew a 10% Over the previous year. The unit net interest income, a measure of their credit profitability, grew by 16%. That growth could continue into the year ahead, as the Federal Reserve has signaled several interest rate hikes are likely in 2022.

The number of retail business customers it was of 7.4 million, in line with the total for the third quarter. The average daily number of retail transactions the company handled during the quarter exceeded one million, but was down 6% from a year earlier.

The investment management income increased a 59 % compared to the previous year. That rate was driven by the acquisition of Eaton Vance which closed last March.

Morgan Stanley is trading at $95.62 and Ei indicators are mostly bearish.