Media Relations: Wesley McDade 212-761-2430 Investor Relations: Leslie Bazos 212-761-5352
Morgan Stanley Fourth Quarter and Full Year 2023 Earnings Results
Morgan Stanley Reports Fourth Quarter Net Revenues of $12.9 Billion, EPS of $0.85 and ROTCE of 8.4%;
Full Year Net Revenues of $54.1 Billion, EPS of $5.18 and ROTCE of 12.8%
NEW YORK, January 16, 2024 – Morgan Stanley (NYSE: MS) today reported net revenues of $12.9 billion for the fourth
quarter ended December 31, 2023 compared with $12.7 billion a year ago. Net income applicable to Morgan Stanley was $1.5
billion, or $0.85 per diluted share,
1
compared with $2.2 billion, or $1.26 per diluted share,
1
for the same period a year ago.
Pre-tax income for the fourth quarter includes $535 million of charges or $0.28 per diluted share
1,
2
: $286 million related to an
FDIC special assessment and a $249 million legal charge related to a specific matter.
Full year net revenues were $54.1 billion compared with $53.7 billion a year ago. Net income applicable to Morgan Stanley was
$9.1 billion, or $5.18 per diluted share,
1
compared with $11.0 billion, or $6.15 per diluted share,
1
a year ago.
Ted Pick, Chief Executive Officer, said, “In 2023, the Firm reported a solid ROTCE against a mixed market backdrop and a
number of headwinds. We begin 2024 with a clear and consistent business strategy and a unified leadership team. We are
focused on achieving our long-term financial goals and continuing to deliver for shareholders.”
Financial Summary
3
,
4
Full Year Highlights
Firm ($MM, except per share data)
4Q 2023
4Q 2022
FY 2023
FY 2022
• The Firm reported full year net revenues of $54.1
billion and net income of $9.1 billion.
• The Firm delivered full year ROTCE of 12.8%.
5
• The full year Firm expense efficiency ratio was 77%.
9
The full year was negatively impacted by expenses
related to severance costs of $353 million, an FDIC
special assessment of $286 million, a $249 million
legal charge related to a specific matter, and
integration-related expenses of $293 million.
• Standardized Common Equity Tier 1 capital ratio was
15.2%.
18
• Institutional Securities reported full year net revenues
of $23.1 billion reflecting lower completed activity in
Investment Banking and lower results in Equity and
Fixed Income on reduced client activity and a less
favorable market environment compared to a year
ago.
• Wealth Management delivered full year net revenues
of $26.3 billion, reflecting mark-to-market gains on
investments associated with DCP versus losses a
year ago and higher net interest income.
6
The pre-tax
margin was 24.9%.
7,8
The business added net new
assets of $282 billion, representing a full-year 7%
annualized growth rate from beginning period
assets.
12
• Investment Management reported full year net
revenues of $5.4 billion and AUM increased to $1.5
trillion.
13
Net revenues
$12,896
$12,749
$54,143
$53,668
Provision for credit losses
$3
$87
$532
$280
Compensation expense
$5,951
$5,615
$24,558
$23,053
Non-compensation expenses
$4,846
$4,253
$ 17,240
$16,246
Pre-tax income
7
$2,096
$2,794
$11,813
$14,089
Net income app. to MS
$1,517
$2,236
$9,087
$11,029
Expense efficiency ratio
9
84%
77%
77%
73%
Earnings per diluted share
1
$0.85
$1.26
$5.18
$6.15
Book value per share
$55.50
$54.55
$ 55.50
$54.55
Tangible book value per share
$40.89
$40.06
$ 40.89
$40.06
Return on equity
6.2%
9.2%
9.4%
11.2%
Return on tangible equity
5
8.4%
12.6%
12.8%
15.3%
Institutional Securities
Net revenues
$4,940
$4,800
$23,060
$24,393
Investment Banking
$1,318
$1,252
$4,578
$5,235
Equity
$2,202
$2,176
$9,986
$10,769
Fixed Income
$1,434
$1,418
$7,673
$9,022
Wealth Management
Net revenues
$6,645
$6,626
$26,268
$24,417
Fee-based client assets ($Bn)
10
$1,983
$1,678
$1,983
$1,678
Fee-based asset flows ($Bn)
11
$41.6
$20.4
$109.2
$162.8
Net new assets ($Bn)
12
$47.5
$51.6
$282.3
$311.3
Loans ($Bn)
$146.5
$146.1
$146.5
$146.1
Investment Management
Net revenues
$1,464
$1,461
$5,370
$5,375
AUM ($Bn)
13
$1,459
$1,305
$1,459
$1,305
Long-term net flows ($Bn)
14
$(7.1)
$(6.0)
$(15.2)
$(25.8)
2
Fourth Quarter Results
Institutional Securities
Institutional Securities reported net revenues for the current quarter of $4.9 billion compared with $4.8 billion a year
ago. Pre-tax income was $408 million compared with $748 million a year ago.
7
Investment Banking revenues up 5% from a year ago:
• Advisory revenues were essentially unchanged from a year
ago reflecting completed M&A activity in the current
quarter.
• Equity underwriting revenues were essentially unchanged
from a year ago.
• Fixed income underwriting revenues increased 25% from a
year ago on higher investment grade issuances.
Equity net revenues:
• Equity net revenues were essentially unchanged from a
year ago. The absence of markdowns on certain strategic
investments versus a year ago were offset by increased
funding and liquidity costs.
Fixed Income net revenues:
• Fixed Income net revenues were essentially unchanged
versus a year ago reflecting higher revenues in
commodities driven by improved market conditions and
increased client activity partially offset by lower results in
credit products.
Other:
• Other revenues for the quarter reflect mark-to-market
losses on corporate loans, inclusive of loan hedges, of
$405 million. These losses were partially offset by net
interest income and fees on corporate loans of $248
million, mark-to-market gains on DCP and revenues from
our Japanese securities joint venture.
Total Expenses:
• Compensation expense increased from a year ago reflecting higher discretionary compensation, partially offset by
lower expenses related to outstanding deferred equity compensation and significantly lower severance costs due to
an employee action a year ago.
• Non-compensation expenses increased from a year ago primarily driven by higher legal expenses including a
specific matter of $249 million and an FDIC special assessment of $121 million.
15
($ millions)
4Q 2023
4Q 2022
Net Revenues
$4,940
$4,800
Investment Banking
$1,318
$1,252
Advisory
$702
$711
Equity underwriting
$225
$227
Fixed income underwriting
$391
$314
Equity
$2,202
$2,176
Fixed Income
$1,434
$1,418
Other
$(14)
$(46)
Provision for credit losses
$22
$61
Total Expenses
$4,510
$3,991
Compensation
$1,732
$1,644
Non-compensation
$2,778
$2,347
3
Wealth Management
Wealth Management net revenues of $6.6 billion in the current quarter were essentially unchanged from a year ago.
Pre-tax income of $1.4 billion
7
in the current quarter resulted in a pre-tax margin of 21.5%.
8
Net revenues:
• Asset management revenues increased from a year ago
reflecting higher asset levels and the impact of positive fee-
based flows.
• Transactional revenues were essentially unchanged
excluding the impact of mark-to-market on investments
associated with DCP.
6,16
• Net interest income decreased from a year ago driven by
changes in deposit mix, partially offset by higher interest
rates.
Total Expenses:
• Compensation expense increased from a year ago driven by
higher compensable revenues and higher expenses related
to DCP.
6
• Non-compensation expenses increased from a year ago
primarily driven by an FDIC special assessment of $165
million, partially offset by lower marketing and business
development costs.
15
Investment Management
Investment Management net revenues of $1.5 billion were essentially unchanged from a year ago. Pre-tax income was
$265 million compared with $214 million a year ago.
7
Net revenues:
• Asset management and related fees increased from a
year ago on higher average AUM driven by increased
asset values.
• Performance-based income and other revenues
decreased from a year ago primarily due to lower
accrued carried interest in our private funds partially
offset by mark-to-market gains on public investments
compared to losses a year ago.
Total Expenses:
• Compensation expense decreased from a year ago,
primarily driven by lower compensation associated with
carried interest.
($ millions)
4Q 2023
4Q 2022
Net Revenues
$6,645
$6,626
Asset management
$3,556
$3,347
Transactional
$1,088
$931
Net interest
$1,852
$2,138
Other
$149
$210
Provision for credit losses
$(19)
$26
Total Expenses
$5,236
$4,760
Compensation
$3,640
$3,343
Non-compensation
$1,596
$1,417
($ millions)
4Q 2023
4Q 2022
Net Revenues
$1,464
$1,461
Asset management and related fees
$1,403
$1,371
Performance-based income and other
$61
$90
Total Expenses
$1,199
$1,247
Compensation
$579
$628
Non-compensation
$620
$619
4
Full Year Results
Institutional Securities
Institutional Securities reported net revenues of $23.1 billion compared with $24.4 billion a year ago. Pre-tax income
was $4.5 billion compared with $6.7 billion a year ago.
7
Investment Banking revenues down 13%:
• Advisory revenues decreased driven by fewer completed
M&A transactions on lower market volumes.
• Equity underwriting revenues were essentially unchanged.
Higher secondary and convertible offerings were offset by
lower IPOs.
• Fixed income underwriting revenues were essentially
unchanged from a year ago as higher investment grade
issuances were offset by lower non-investment grade
issuances.
Equity net revenues down 7%:
• Equity net revenues decreased across businesses primarily
on lower client activity and increased funding and liquidity
costs compared to a year ago.
Fixed Income net revenues down 15%:
• Fixed Income net revenues decreased from a strong prior
year, primarily driven by declines in foreign exchange and
commodities on less favorable market conditions and lower
client activity.
Other:
• Other revenues for the year reflect net interest income and
fees on corporate loans of $1 billion and revenues from our
Japanese securities joint venture, partially offset by mark-
to-market losses on corporate loans, inclusive of loan
hedges, of $577 million.
Provision for credit losses:
• Provision for credit losses increased from a year ago primarily driven by deteriorating conditions in the commercial
real estate sector, including provisions for certain specific commercial real estate loans.
Total Expenses:
• Compensation expense was essentially unchanged from a year ago as higher expenses related to DCP and stock-
based compensation plans were offset by lower expenses related to outstanding deferred equity compensation.
6
• Non-compensation expenses increased from a year ago on investments in technology, an FDIC special assessment
of $121 million, and higher legal costs inclusive of $249 million related to a specific matter.
15
($ millions)
FY 2023
FY 2022
Net Revenues
$23,060
$24,393
Investment Banking
$4,578
$5,235
Advisory
$2,244
$2,946
Equity underwriting
$889
$851
Fixed income underwriting
$1,445
$1,438
Equity
$9,986
$10,769
Fixed Income
$7,673
$9,022
Other
$823
$(633)
Provision for credit losses
$401
$211
Total Expenses
$18,183
$17,467
Compensation
$8,369
$8,246
Non-compensation
$9,814
$9,221
5
Wealth Management
Wealth Management reported net revenues of $26.3 billion compared with $24.4 billion a year ago. Pre-tax income of
$6.5 billion
7
in the current year resulted in a pre-tax margin of 24.9%.
8
Net revenues up 8%:
• Asset management revenues increased from a year ago on
positive fee-based flows, partially offset by a reduction driven
by lower average asset levels due to declines in the markets
and changes in the mix of existing client portfolios.
• Transactional revenues were essentially unchanged
excluding the impact of mark-to-market gains of $282 million
in the current year versus mark-to-market losses of $858
million a year ago on investments associated with DCP.
6,
16
• Net interest income increased from a year ago on higher
interest rates, partially offset by changes in deposit mix.
Provision for Credit Losses:
• Provision for credit losses increased from a year ago
primarily driven by deteriorating conditions in the commercial
real estate sector, including provisions for specific
commercial real estate loans.
Total Expenses:
• Compensation expense increased driven by higher expenses related to DCP versus a year ago.
6
• Non-compensation expenses increased primarily driven by an FDIC special assessment of $165 million and higher
technology expenses and costs related to exits of real estate.
15
Investment Management
Investment Management net revenues of $5.4 billion were essentially unchanged from a year ago. Pre-tax income was
$842 million compared with $807 million a year ago.
7
Net revenues:
• Asset management and related fees decreased due to
a shift in the mix of average AUM, driven by the
cumulative effect of net flows.
13
• Performance-based income and other revenues
increased from a year ago on mark-to-market gains
compared to losses a year ago on investments
associated with DCP and on public investments,
partially offset by lower accrued carried interest in our
private funds.
6
Total Expenses:
• Compensation expense decreased from a year ago driven by lower compensation associated with carried interest,
partially offset by gains related to DCP compared with losses a year ago.
6
($ millions)
FY 2023
FY 2022
Net Revenues
$26,268
$24,417
Asset management
$14,019
$13,872
Transactional
$3,556
$2,473
Net interest
$8,118
$7,429
Other
$575
$643
Provision for credit losses
$131
$69
Total Expenses
$19,607
$17,765
Compensation
$13,972
$12,534
Non-compensation
$5,635
$5,231
($ millions)
FY 2023
FY 2022
Net Revenues
$5,370
$5,375
Asset management and related fees
$5,231
$5,332
Performance-based income and other
$139
$43
Total Expenses
$4,528
$4,568
Compensation
$2,217
$2,273
Non-compensation
$2,311
$2,295
6
Other Matters
• The Firm repurchased $1.3 billion of its
outstanding common stock during the quarter, and
$5.3 billion during the year as part of its Share
Repurchase Program.
• The Board of Directors declared a $0.85 quarterly
dividend per share, payable on February 15, 2024
to common shareholders of record on January 31,
2024.
• The effective tax rate for the current quarter was
26.5% and for the full year was 21.9%. The higher
current quarter rate primarily reflects the non-
deductibility of a specific legal matter.
4Q 2023
4Q 2022
FY 2023
FY 2022
Common Stock Repurchases
Repurchases ($MM)
$1,300
$1,700
$5,300
$9,865
Number of Shares (MM)
17
20
62
113
Average Price
$75.23
$86.07
$85.35
$87.25
Period End Shares (MM)
1,627
1,675
1,627
1,675
Tax Rate
26.5%
18.9%
21.9%
20.7%
Capital
17
Standardized Approach
CET1 capital
18
15.2%
15.3%
Tier 1 capital
18
17.1%
17.2%
Advanced Approach
CET1 capital
18
15.4%
15.6%
Tier 1 capital
18
17.4%
17.6%
Leveraged-based capital
Tier 1 leverage
19
6.7%
6.7%
SLR
20
5.5%
5.5%
7
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities,
wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve
clients worldwide including corporations, governments, institutions and individuals. For further information about
Morgan Stanley, please visit www.morganstanley.com.
A financial summary follows. Financial, statistical and business-related information, as well as information regarding
business and segment trends, is included in the financial supplement. Both the earnings release and the financial
supplement are available online in the Investor Relations section at www.morganstanley.com.
NOTICE:
The information provided herein and in the financial supplement, including information provided on the Firm’s earnings
conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation
of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial
supplement, both of which are available on www.morganstanley.com.
This earnings release may contain forward-looking statements, including the attainment of certain financial and other
targets, objectives and goals. Readers are cautioned not to place undue reliance on forward-looking statements, which
speak only as of the date on which they are made, which reflect management’s current estimates, projections,
expectations, assumptions, interpretations or beliefs and which are subject to risks and uncertainties that may cause
actual results to differ materially. For a discussion of risks and uncertainties that may affect the future results of the
Firm, please see “Forward-Looking Statements” preceding Part I, Item 1, “Competition” and “Supervision and
Regulation” in Part I, Item 1, “Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and “Quantitative and
Qualitative Disclosures about Risk” in Part II, Item 7A in the Firm’s Annual Report on Form 10-K for the year ended
December 31, 2022 and other items throughout the Form 10-K, the Firm’s Quarterly Reports on Form 10-Q and the
Firm’s Current Reports on Form 8-K, including any amendments thereto.
8
1
Includes preferred dividends related to the calculation of earnings per share for the fourth quarter of 2023 and 2022 of approximately $134
million and $123 million, respectively. Includes preferred dividends related to the calculation of earnings per share for the years ended 2023
and 2022 of approximately $557 million and $489 million, respectively.
2
The Firm recorded a one-time FDIC Special Assessment of $286 million pre-tax ($218 million post-tax) and a legal charge related to a
specific matter of $249 million pre-tax ($234 million post-tax) which negatively impacted earnings per diluted shares by $0.28.
3
The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S.
GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the course of its earnings releases,
earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial
measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments
that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with U.S.
GAAP. Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information to analysts, investors and other
stakeholders in order to provide them with greater transparency about, or an alternative method for assessing our financial condition,
operating results, or capital adequacy. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different
from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we
will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S.
GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable U.S.
GAAP financial measure.
4
Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics
which we believe to be useful to us, analysts, investors, and other stakeholders by providing further transparency about, or an additional
means of assessing, our financial condition and operating results.
5
Return on average tangible common equity is a non-GAAP financial measure that the Firm considers useful for analysts, investors and
other stakeholders to allow comparability of period-to-period operating performance and capital adequacy. The calculation of return on
average tangible common equity represents full year or annualized net income applicable to Morgan Stanley less preferred dividends as a
percentage of average tangible common equity. Tangible common equity, also a non-GAAP financial measure, represents common equity
less goodwill and intangible assets net of allowable mortgage servicing rights deduction.
6
“DCP” refers to certain employee deferred cash-based compensation programs. Please refer to "Management’s Discussion and Analysis
of Financial Condition and Results of Operations – Other Matters – Deferred Cash-Based Compensation” in the Firm’s Annual Report on
Form 10-K for the year ended December 31, 2022.
7
Pre-tax income represents income before provision for income taxes.
8
Pre-tax margin represents income before provision for income taxes divided by net revenues.
9
The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues.
10
Wealth Management fee-based client assets represent the amount of assets in client accounts where the basis of payment for services is
a fee calculated on those assets.
11
Wealth Management fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers,
dividends, interest, and client fees, and exclude institutional cash management related activity.
12
Wealth Management net new assets represent client inflows, including dividends and interest, and asset acquisitions, less client outflows,
and exclude activity from business combinations/divestitures and the impact of fees and commissions.
13
AUM is defined as assets under management or supervision.
14
Long-term net flows include the Equity, Fixed Income and Alternative and Solutions asset classes and excludes the Liquidity and Overlay
Services asset class.
15
Following the failures of certain banks and resulting losses to the FDIC’s Deposit Insurance Fund in the first half of 2023, the FDIC
adopted a final rule on November, 16 2023 to implement a special assessment to recover the cost associated with protecting uninsured
depositors. We recorded the cost of the entire special assessment of $286 million in the fourth quarter of 2023. Of the $286 million, $121
million was recorded in the Institutional Securities segment and $165 million was recorded in the Wealth Management segment.
9
16
Transactional revenues include investment banking, trading, and commissions and fee revenues.
17
Capital ratios are estimates as of the press release date, January 16, 2024.
18
CET1 capital is defined as Common Equity Tier 1 capital. The Firm’s risk-based capital ratios are computed under each of the (i)
standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (the “Standardized Approach”) and (ii)
applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). For
information on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’s
Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in
the Firm’s Annual Report on Form 10-K for the year ended December 31, 2022.
19
The Tier 1 leverage ratio is a leverage-based capital requirement that measures the Firm’s leverage. Tier 1 leverage ratio utilizes Tier 1
capital as the numerator and average adjusted assets as the denominator.
20
The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately $78.2 billion and $77.2 billion, and
supplementary leverage exposure denominator of approximately $1.43 trillion and $1.40 trillion, for the fourth quarter of 2023 and 2022,
respectively.
Consolidated Income Statement Information
(unaudited, dollars in millions)
Quarter Ended
Percentage Change From:
Twelve Months Ended
Percentage
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Change
Revenues:
Investment banking
1,415
$
1,048
$
1,318
$
35%
7%
4,948
$
5,599
$
(12%)
Trading
3,305
3,679
3,017
(10%)
10%
15,263
13,928
10%
Investments
189
144
85
31%
122%
573
15
*
Commissions and fees
1,110
1,098
1,169
1%
(5%)
4,537
4,938
(8%)
Asset management
5,041
5,031
4,803
--
5%
19,617
19,578
--
Other
(61)
296
38
*
*
975
283
*
Total non-interest revenues
10,999
11,296
10,430
(3%)
5%
45,913
44,341
4%
Interest income
14,058
13,305
9,232
6%
52%
50,281
21,595
133%
Interest expense
12,161
11,328
6,913
7%
76%
42,051
12,268
*
Net interest
1,897
1,977
2,319
(4%)
(18%)
8,230
9,327
(12%)
Net revenues
12,896
13,273
12,749
(3%)
1%
54,143
53,668
1%
Provision for credit losses
3
134
87
(98%)
(97%)
532
280
90%
Non-interest expenses:
Compensation and benefits
5,951
5,935
5,615
--
6%
24,558
23,053
7%
Non-compensation expenses:
Brokerage, clearing and exchange fees
865
855
851
1%
2%
3,476
3,458
1%
Information processing and communications
987
947
933
4%
6%
3,775
3,493
8%
Professional services
822
759
853
8%
(4%)
3,058
3,070
--
Occupancy and equipment
528
456
443
16%
19%
1,895
1,729
10%
Marketing and business development
224
191
295
17%
(24%)
898
905
(1%)
Other
1,420
851
878
67%
62%
4,138
3,591
15%
Total non-compensation expenses
4,846
4,059
4,253
19%
14%
17,240
16,246
6%
Total non-interest expenses
10,797
9,994
9,868
8%
9%
41,798
39,299
6%
Income before provision for income taxes
2,096
3,145
2,794
(33%)
(25%)
11,813
14,089
(16%)
Provision for income taxes
555
710
528
(22%)
5%
2,583
2,910
(11%)
Net income
1,541
$
2,435
$
2,266
$
(37%)
(32%)
9,230
$
11,179
$
(17%)
Net income applicable to nonredeemable noncontrolling interests
24
27
30
(11%)
(20%)
143
150
(5%)
Net income applicable to Morgan Stanley
1,517
2,408
2,236
(37%)
(32%)
9,087
11,029
(18%)
Preferred stock dividend
134
146
123
(8%)
9%
557
489
14%
Earnings applicable to Morgan Stanley common shareholders
1,383
$
2,262
$
2,113
$
(39%)
(35%)
8,530
$
10,540
$
(19%)
Notes:
-
-
-
10
Firm net revenues excluding mark-to-market gains and losses on deferred cash-based compensation plans (DCP) were: 4Q23: $12,527 million, 3Q23: $13,475 million, 4Q22: $12,555 million, 4Q23 YTD: $53,709 million,
4Q22 YTD: $54,866 million.
Firm compensation expenses excluding DCP were: 4Q23: $5,597 million, 3Q23: $5,992 million, 4Q22: $5,426 million, 4Q23 YTD: $23,890 million, 4Q22 YTD: $23,769 million.
The End Notes are an integral part of this presentation. Refer to pages 12 - 17 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definition of Performance Metrics and Terms, Supplemental Quantitative Details
and Calculations, and Legal Notice.
Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
Quarter Ended Percentage Change From: Twelve Months Ended Percentage
Dec 31, 2023
Sep 30, 2023
Dec 31, 2022
Sep 30, 2023
Dec 31, 2022
Dec 31, 2023
Dec 31, 2022
Change
Financial Metrics:
Earnings per basic share
0.86
$
1.39
$
1.28
$
(38%)
(33%)
5.24
$
6.23
$
(16%)
Earnings per diluted share
0.85
$
1.38
$
1.26
$
(38%)
(33%)
5.18
$
6.15
$
(16%)
Return on average common equity
6.2%
10.0%
9.2%
9.4%
11.2%
Return on average tangible common equity
8.4%
13.5%
12.6%
12.8%
15.3%
Book value per common share
55.50
$
55.08
$
54.55
$
55.50
$
54.55
$
Tangible book value per common share
40.89
$
40.53
$
40.06
$
40.89
$
40.06
$
Financial Ratios:
Pre-tax profit margin
16%
24%
22%
22%
26%
Compensation and benefits as a % of net revenues
46%
45%
44%
45%
43%
Non-compensation expenses as a % of net revenues
38%
31%
33%
32%
30%
Firm expense efficiency ratio
84%
75%
77%
77%
73%
Effective tax rate
26.5%
22.6%
18.9%
21.9%
20.7%
Statistical Data:
Period end common shares outstanding (millions)
1,627
1,642
1,675
(1%)
(3%)
Average common shares outstanding (millions)
Basic
1,606
1,624
1,652
(1%)
(3%)
1,628
1,691
(4%)
Diluted
1,627
1,643
1,679
(1%)
(3%)
1,646
1,713
(4%)
Worldwide employees
80,006
80,710
82,427
(1%)
(3%)
11
The End Notes are an integral part of this presentation. Refer to pages 12 - 17 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definition of Performance Metrics and Terms, Supplemental
Quantitative Details and Calculations, and Legal Notice.
