NEW YORK, Jan. 18 (Xinhua) -- Morgan Stanley reported on Friday that its earnings climbed in 2012, and the news moved the company' s share price to a 52-week high in the morning session.
The sixth largest U.S. bank by assets said that for the fourth quarter of 2012, its net revenue reached 7.477 billion U.S. dollars excluding debt valuation adjustment (DVA), up from 5.459 billion dollars a year ago. Income from continuing operations applicable to Morgan Stanley was 894 million dollars, or 0.45 dollars per diluted share, compared with a loss of 349 million dollars, or 0.20 dollars per diluted share a year ago.
DVA is an accounting adjustment that's beneficial to a bank when its borrowing costs rise.
Meanwhile, the company's fourth-quarter global wealth management pre-tax margin was 17 percent, the highest since the inception of the joint venture. Investment banking ranked first in global IPOs and second in global announced merger & acquisition and global equity.
For the full year, excluding DVA, net revenue was 30.5 billion dollars, 6.6 percent higher than the previous year. Income from continuing operations applicable to Morgan Stanley was 3.2 billion dollars, or 1.59 dollars per diluted share, compared with a loss of 1.9 billion dollars, or 0.08 dollars per diluted share a year ago.
"After a year of significant challenges, Morgan Stanley has reached a pivot point," said company Chairman and CEO James P. Gorman in a statement. "We continue to demonstrate leadership in investment banking and equity sales and trading. Our firm is now poised to reach the returns of which it is capable on behalf of our shareholders."
The company's upbeat earnings report came on the heels of strong results from its archrival Goldman Sachs on Wednesday.