With earnings season in gear,S&P Global Market Intelligence presents a snapshot of recently reported financialresults for companies in the financial services space.
Broker/dealer
reported second-quarterearnings applicable tocommon shareholders of $1.43 billion, or 75 cents per share, down from $1.67 billion,or 85 cents per share, in the prior-year quarter.
The prior-yearquarter included a debt valuation adjustment of $182 million. Excluding debt valuationadjustments in the prior-year quarter, net income applicable to Morgan Stanley was79 cents per share.
The S&PCapital IQ consensus GAAP EPS estimate for the quarter was 59 cents.
Excluding$13.4 million of acquisition-related expenses, adjusted net income attributableto the company for the fiscal quarter was $134.0 million, or 93 cents per share,on a non-GAAP basis.
The S&PCapital IQ consensus normalized EPS estimate for the fiscal quarter was 90 cents.
Specialty lender
The S&PCapital IQ consensus GAAP EPS estimate for the quarter was $1.89.
Net incomefor the quarter included a gain of $1.1 billion, or $677 million after tax, fromthe sale of the company's Costco U.S. co-brand card portfolio and a restructuringcharge of $232 million, or $151 million after tax, related to the company's effortsto reduce its cost base.
Theyear-over-year decrease was due to a $77 million decrease in gains on loan sales,a $26 million increase in provisions for credit losses and a $4 million increasein total expenses. Those changes were offset by a $45 million rise in net interestincome and a $25 million decrease in income tax expense.
Coreearnings attributable to common stock were $51.1 million, or 12 cents per share,compared with $85.8 million, or 20 cents per share, a year ago.
TheS&P Capital IQ consensus normalized EPS estimate was 11 cents.