Morgan Stanley (MS) Q4 2023 Earnings Call Transcript Summary

By / / Morgan Stanley

The following is a summary of the Morgan Stanley (MS) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • Morgan Stanley reported firm revenues of $54 billion with $12B of profit before tax, doubled the averages compared to ’09-’14.
  • The client assets in their durable businesses have tripled, indicating great growth potential.
  • A strong return on tangible common equity was recorded at 13%, even after accounting for notable items that reduced returns by over 100 points.
  • They reported a CET1 ratio above 15%, showcasing strong capital preservation.

Business Progress:

  • Over the past 15 years, Morgan Stanley has successfully integrated with Smith Barney, acquired Solium and recent acquisitions being E*TRADE and Eaton Vance, transforming its business.
  • Morgan Stanley is aiming for a $10 trillion asset target, indicating growth in overall wealth.
  • The key targets include a 30% margin in wealth management and a 70% overall firm efficiency ratio, indicating focus on capital efficiency and returns.
  • Morgan Stanley anticipates the wealth and investment management segment to drive growth.
  • There’s an operational shift towards a more integrated approach to banking, aiming at generating operating leverage and returns.
  • Morgan Stanley has been successful in adding new clients with 80% of assets coming from outside the institution, suggesting diversified growth in its business pipeline.
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