Morgan Stanley exceeds projections and sees drop in provisions for credit losses

Net revenue also reached a record of US$21.35 billion, annual growth of 27%, above expectations, of US$19.68 billion.

Provisions for credit losses fell by half year-on-year to $98 million. Operating expenses grew 16%, to US$13.9 billion, reflecting higher expenses with compensation and costs linked to the execution of operations.

Investment banking revenues grew 58%, driven by an increase in mergers and acquisitions, share and debt issuances. The equities area recorded record revenue of US$6.3 billion, up 69%, benefiting from strong client activity, while fixed income increased 13%.

The Wealth Management unit also achieved record revenue of US$8.86 billion, up 14%, supported by higher management fees, greater client activity and expansion in net interest income. The division raised US$148.1 billion in net new assets in the quarter, bringing total client assets in the Wealth Management and Investment Management areas to US$10 trillion for the first time.

Morgan Stanley's board authorized a new share buyback program worth up to $20 billion, with no expiration date, and raised the quarterly dividend by 15 cents to $1.15 per share. During the quarter, the bank repurchased US$1.5 billion in its own shares.

Assessment for increasing ethanol content in gasoline did not include durability test

Increased ethanol content in gasoline should not affect flex-fuel vehicles, but it worries owners of cars that run exclusively on gasoline. Experts warn of the lack of durability tests and the risk of damage to old and imported models