Morgan Stanley (NYSE:MS) Q2 2024 Earnings Conference Call July 16, 2024 9:30 AM ET
Company Participants
Ted Pick - CEO
Sharon Yeshaya - CFO
Conference Call Participants
Glenn Schorr - Evercore
Ebrahim Poonawala - Bank of America
Mike Mayo - Wells Fargo Securities
Dan Fannon - Jefferies
Brennan Hawken - UBS
Devin Ryan - JMP Securities
Steven Chubak - Wolfe Research
Gerard Cassidy - RBC
Saul Martinez - HSBC
Operator
Good morning. Welcome to Morgan Stanley's Second Quarter 2024 Earnings Call. On behalf of Morgan Stanley, I will begin the call with the following information and disclaimers. This call is being recorded.
During today's presentation, we will refer to our earnings release and financial supplement, copies of which are available at morganstanley.com. Today's presentation may include forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. Morgan Stanley does not undertake to update the forward-looking statements in this discussion. Please refer to our notices regarding forward-looking statements and non-GAAP measures that appear in the earnings release. This presentation may not be duplicated or reproduced without our consent.
I will now turn the call over to Chief Executive Officer, Ted Pick.
Ted Pick
Good morning and thank you for joining us. The firm generated $15 billion in revenue, $1.82 in EPS, and a 17.5% return on tangible in the second quarter. [Solid earnings] (ph) and demonstration of operating leverage completes a strong first half of 2024. $30 billion in revenue, $6 billion in earnings, and an 18.6% return on capital. In institutional securities, we're beginning to see the benefits from our continued focus on our world-class investment banking franchise, with revenues up 50% year-over-year, including a 70% increase year-over-year in fixed income underwriting.
In institutional equities, we are back with a $3 billion quarter. In wealth, we posted margins of 27%, and across wealth and investment management, we've now grown total client assets to $7.2 trillion on our road to $10 trillion plus. Together, we delivered strong operating leverage. Further, on the back of the annual stress test results, we announced that we will increase the dividend by $0.075 for the third year in a row to [$0.925] (ph), reflecting the growth of our durable earnings over time. During the quarter, we built $1.5 billion of capital, and at quarter end, our CET1 ratio is 15.2%, 170 basis points above the forward requirement. Our capital position provides us the flexibility to continue to support dividend growth, support our clients, and buy the stock back opportunistically.