Morgan Stanley turned positive in the fourth quarter, despite the slowdown in trading on the debt market. In the three months to December, the bank reported profits of $908 million, 39 cents a share, versus a red of $1,63 billion, -91 cents a share, in the same period last year, driven by extraordinary charges and legal fees.
Earnings applicable to ordinary shareholders came in at $753 million, versus losses of $1,794 billion in the same period of 2014. Excluding extraordinary items, earnings came in at 43 cents per share, better than the 33 cents expected by analysts .
Revenue fell from $7,764 billion to $7,738 billion. Excluding accounting adjustments, revenue came in at $7,86 billion, more than $7,59 billion expected by analysts.
For full 2015, Morgan Stanley reported net income of $6,1 billion, $2,90 per share, versus $3,5 billion, $1,60 per share, in 2014. Revenue was $35,2. 34,3 billion, against 2014 billion in XNUMX.
In response to difficulties in its debt, currency and commodities trading division, the company decided to cut 1.200 jobs. The layoffs had already been announced previously.
Morgan Stanley's fixed-income trading business generated revenue down to $550 million, versus $599 million in the fourth quarter 2014, while securities-related revenue increased from 1,6 to 1,8 billions of dollars.
Investment banking activities saw turnover fall to 1,31 billion, from 1,46 billion in the same period of 2014. Commissions collected for market transaction advisory activities rose to 516 million, from the previous 488 million, while those for debt subscription decreased from 462 to 346 million dollars.
Revenue generated by the asset management division also decreased by a measure to 3,75 billion. Compensation and benefits expenses were $16 billion, down 10% from $17,8 billion in Q2014 XNUMX.
Return on capital, a measure of a bank's profitability, was 8,5%, up from 4,9% a year earlier. The company has pledged to bring the figure above 10%.
