Q4 snap: another good quality result
MS delivered a 9% beat thanks to revenues that were 3% ahead of consensus and an efficiency ratio that was 30pp below consensus. There was also a modest benefit from a slightly lower tax rate. The revenue beat was driven by Wealth Management and IB (ECM & DCM) while FICC was a miss (but perhaps not unexpected post GS). Investments were also ~$0.2bn above our forecast, which can be volatile. The only slight disappointment is the lack of a strategic update, although this may be provided prior to the call. Overall, the quality seems good and earnings continue to move in the right direction.Morgan Stanley is a financial holding company. Through its subsidiaries and affiliates, the company advises, and originates, trades, manages and distributes capital for, governments, institutions and individuals. The company's segments are: Institutional Securities, which provides investment banking, sales and trading, lending and other services; Wealth Management, which provides brokerage and investment advisory services, financial and wealth planning services, stock plan administration services, annuity and insurance products, residential real estate loans and other lending products, banking, and retirement plan services; and Investment Management, which provides investment strategies and products.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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