Morgan Stanley net revenues $9 billionStaff Writer | January 17, 2017
Morgan Stanley reported net revenues of $9 billion for the fourth quarter ended December 31, 2016 compared with $7.7 billion a year ago.
Banking $0.81 per diluted share
POST forecast was EPS $0.70, revenue $8.50 billion.
The prior year quarter included DVA losses of $124 million. Excluding DVA in the prior year quarter, net revenues were $7.9 billion and income applicable to Morgan Stanley was $986 million, or $0.43 per diluted share.
Compensation expense of $4.1 billion increased from $3.7 billion a year ago primarily driven by higher revenues.
Non-compensation expenses of $2.7 billion compared with $2.6 billion a year ago.
The effective tax rate for the current quarter was 25.2%, which reflected net discrete tax benefits of $135 million primarily related to the remeasurement of reserves and related interest due to new information regarding the status of a multi-year tax authority examination.
The annualized return on average common equity was 8.7 percent in the current quarter. ■