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Morgan Stanley profitable in Q4: net income $908 million

Staff writer ▼ | January 19, 2016
Morgan Stanley swung to a profit in the fourth quarter. The group achieved net income of $908 million in the three months ended December 31, 2015, compared with net losses of $1.6 billion the same quarter a year earlier.
Morgan Stanley
Morgan Stanley   Jump up from a loss of $1.6 billion
Earnings per share excluding debt valuation adjustments came in at 43 cents, ahead of the 32 cents which analysts had been anticipating.

Net revenue fell to $7.7 billion from $7.8 billion the prior year as a strong performance in Equity sales and trading, and solid results in Investment Banking, were offset by a weakness in Fixed Income and Commodities sales and trading.

Expenses during the quarter were less than the previous year. Compensation expenses came to $3.7 billion, compared to $5.1 billion a year ago, while the non-compensation expense fell to $2.6 billion from $5.6 billion.

"A strong overall performance in the first half of the year was impacted by difficult market conditions in the second half that dampened trading activity," said chairman and chief executive James Gorman.

"In the fourth quarter we took action to meaningfully restructure our Fixed Income business on a capital and expense basis. We enter 2016 with a continued focus on managing expenses across the Firm and driving up returns for our shareholders."