Morgan Stanley (MS) Posts Q4 EPS of $0.39, $0.43 ex. DVA

Morgan Stanley (NYSE: MS) reported Q4 EPS of $0.39, $0.06 better than the analyst estimate of $0.33. Revenue for the quarter came in at $7.7 billion versus the consensus estimate of $7.59 billion.

EPS excluding DVA was $0.43.

Compensation expense of $3.7 billion compared with $5.1 billion a year ago. Results for the current quarter include severance expense of $155 million,9 while results for the prior period included compensation deferral expense adjustments of approximately $1.1 billion.8 Excluding these items, compensation expense decreased year over year reflecting disciplined compensation management.

Non-compensation expenses of $2.6 billion decreased from $5.6 billion a year ago. Excluding $3.1 billion of litigation costs related to residential mortgage and credit crisis matters in the prior year period,8 non-compensation expenses were $2.6 billion compared with $2.5 billion a year ago.

The annualized return on average common equity was 4.4 percent in the current quarter, or 4.9 percent excluding DVA.1,10

As of December 31, 2015, the Firm estimates its pro forma fully phased-in Common Equity Tier 1 risk-based capital and Supplementary Leverage ratios to be approximately 14.1% and 5.8%, respectively.11,12,13

For earnings history and earnings-related data on Morgan Stanley (MS) click here.

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