Morgan Stanley's third-quarter net income for common shareholders fell to $2.41 billion, or $1.38 per share, from $2.63 billion, or $1.47 per share in the same period last year, as the firm grappled with a 9% year-on-year decline in profit due to surging credit loss provisions and increased expenses. This was despite a 2% growth in revenue, reported on Thursday. According to InvestingPro data, the firm's P/E ratio stands at 12.92, with a market cap of 121.23B USD.
Credit loss provisions rose sharply to $134 million from last year's $35 million. This, coupled with heightened expenses, overshadowed the firm's modest revenue growth. The company's revenue for this quarter was 53.19B USD, showing a decline of -6.72 % according to InvestingPro data.
Net revenues for the quarter marginally increased to $13.27 billion, surpassing analysts' estimate of $12.58 billion. Institutional Securities net revenues saw a 27% contraction to $5.67 billion due to curtailed Investment Banking activities, offsetting robust Equity and Fixed Income results. An InvestingPro Tip to note is that Morgan Stanley, a prominent player in the Capital Markets industry, has seen a declining trend in earnings per share.
The firm's Wealth Management division reported a 5% increase in net revenues to $6.40 billion from last year's $6.12 billion, buoyed by higher asset management revenues and assets under management (AUM). Investment Management net revenues climbed 14% to $1.34 billion from $1.17 billion the previous year.
Morgan Stanley's board declared a quarterly dividend of $0.85 per share, payable on November 15, 2023, to shareholders of record by October 31, 2023. This is in line with the InvestingPro Tip that the company has maintained dividend payments for 31 consecutive years.
In other financial news, First Horizon (NYSE:FHN) Corp.'s net income available to shareholders dropped to $129 million or $0.23 per share in Q3 from the prior-year quarter's $257 million or $0.45 per share. The adjusted net income, after accounting for notable items, was reported at $150 million or $0.27 per share, exceeding Thomson Reuters (NYSE:TRI)' analysts' expectations. The company's total revenue for the quarter was $778 million, down from the previous year's Q3 revenue of $875 million and slightly below the projected revenues of $795.49 million. InvestingPro data shows that First Horizon Corp. has a P/E ratio of 5.7 and a market cap of 6340M USD. A relevant InvestingPro Tip for First Horizon Corp. is that the company has maintained dividend payments for 13 consecutive years.
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