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00:004Q EPS coming in at two dollars in one sense the fourth quarter net revenue number coming in at fourteen point five billion the estimate fourteen point four full billion the wealth management number that you wanted some revenue six point three billion. The estimates six point to seven billion. Big number for Morgan Stanley. Equity sales and trading revenue 2.8 6 billion. The estimate two point four nine billion. So that is a nice upside surprise. They do like to sell through on thick. That comes in at one point to three relatively speaking of course against an estimate of one point four for compensation expense is five point four nine billion. The estimate five point a one billion. Just some of the numbers tell pouring out from James Goldman's share diving into Sonali is looking at him. I'm looking at leases. Look at that. And I want to give you that one ratio I've been following which is return tangible common equity. You know what they rounded up. Gorman does a 2 0. I don't know what they had to do to get there to four decimal places up to 20. But 20 percent is not 19 percent John. They stoke just about any positive 90 550 right now Lisa at one point six percent. I'm sure there'll be a lot of comparisons between the equity trading and sales over at Goldman Sachs and what happened at Morgan Stanley where they eked out a beat while Goldman Sachs missed. I also think it's interesting that net interest income actually rose to beat expectations two point 0 9 billion versus the estimate of one point nine two billion. How much are they going to try to emphasize that aspect as they expand in that area. James Goldman the man at the very top of this bank over Morgan Stanley we now have six point five trillion dollars in client assets. He goes on to say The investment bank has continued to gain wallet share. Breaking down these numbers for us. Bloomberg's Sonali Basak. The interesting thing Jon about Morgan Stanley is you have costs that go up for investment bankers across Wall Street. But Morgan Stanley has consistently said over the past year that wealth managers also are going to need more money. It's a very competitive environment and they're growing that business. So I'm seeing right now a pre-tax profit margin that is slightly below expectations. We're going to want to hear a little bit from James Gorman about the details behind that. Remember when it comes to Morgan Stanley they've been operating at a higher efficiency ratio here. They're coming in with an ROE that meets expectations of Wall Street. He has been rewarded. James Gorman has been rewarded for those massive investments he's made last year. Equity trading. Everybody was watching that. That massive beat is notable especially as Lisa said given the decline in Goldman Sachs and the rise over at Morgan Stanley. Morgan Stanley's been a long time leader in equity trading. It matters for them even more when you think that they've been long the number one prime broker on Wall Street. And with that our case goes hiccup last year. They want to maintain that wallet share. And on top of that they also have E-Trade. And they also have that big wealth management unit that feeds into that equity trading revenue. So it's strong their fixed income. James Gorman has spent years turning this around a little bit of history. Remember 2015 they cut a quarter of their workforce but now they're coming back. And for the last couple of years James Gorman had said more than a billion dollars would be normal for fixed income trading. But one point two billion is light. It's two hundred million dollars light of expectations.

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Morgan Stanley Beats 4Q Equity Trading Revenue Estimates

Morgan Stanley reported fourth-quarter results with equities trading revenue of $2.86 billion, while full-year net income jumped 37%. The “Bloomberg Surveillance” team examines the numbers. (Source: Bloomberg)

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