Morgan Stanley (NYSE:MS) Q3 2024 Earnings Conference Call October 16, 2024 8:30 AM ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. Welcome to Morgan Stanley's Third 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.

In the third quarter, Morgan Stanley delivered strong revenues of $15.4 billion, $3 billion of net income and a 17.5% return on tangible. The results reflect top-line growth across our businesses and demonstrate operating leverage. Year-to-date results reflect the firm's ability to generate consistent quarterly performance, $15 billion of revenues, sequential EPS of $2.02, $1.82, and $1.88, and year-to-date returns on tangible of 18%.

Across the firm, we advanced toward our strategic goals while continuing to invest in growth. We are delivering on asset aggregation by leveraging our unique platform and scale in Wealth and Investment Management. Through the first nine months, we achieved $200 billion of organic growth. It's worth noting that over the last year, total client assets are up almost $1.4 trillion. Total client assets across Wealth and Investment Management have now reached $7.6 trillion, on the road to $10 trillion.

Our strategic investments across the Integrated Investment Bank are reflected through share gains in our Institutional franchise. The breadth and depth of our global team working seamlessly across all three regions was evident through the summer and post Labor Day, as we helped clients navigate volatility against economic and policy uncertainty. As a whole, the Integrated Firm is achieving operating leverage with our year-to-date efficiency ratio improving by approximately 300 basis points to 72%. We have achieved this while continuing to thoughtfully invest across business and infrastructure priorities.

Institutional and individual clients are engaged and we are well-positioned to capture opportunities against different market condition backdrops. Strong fee-based flows in Wealth and the strong performance in Institutional Securities speak to clients seeking Morgan Stanley's advice. Improved underwriting markets combined with increasing participation among financial sponsors and corporates across Investment Banking support a constructive outlook. A broadening equity market and evolving interest rate policy are favorable backdrops for our markets businesses. Continued individual client focus on tax customization strategies are a tailwind for our Parametric business inside Investment Management.