Morgan Stanley (NYSE:MS): Lending Procedures Could Drive Future Income


Dallas, Texas 12/18/2013 (FINANCIALSTRENDS) – Morgan Stanley (NYSE:MS) could record upside to its income over the coming year or two from incremental net interest income (NII) from lending and deposit spreads.

Morgan Stanley (NYSE:MS): rate leverage should append to earnings power

NY-based Morgan Stanley is eyeing loan expansion roughly similar to recent levels to hit their 70% loan to deposit objective, and this expansion is moderately quicker than Street estimations.

UBS expert Brennan Hawken stated that if Morgan Stanley reaches its 70% loan to deposit proportion target by the year 2015, management direction for $1.1 billion in incremental pre-tax profits from a 150 basis points (bps) augmentation in temporary rates could be conservative by around 50%.

The firm is eyeing a low to mid-teens return-on-equity (ROE) from its banking procedures after rates begin to move up that seems attainable. More significantly, it seems to be rising this platform rapidly but logically, with a cautious eye to credit risk, and permitting for a structural division of brokerage, banking as well as underwriting functions.

Morgan Stanley sells 19 lakh Yes Bank scrips for around Rs 69 cr

Morgan Stanley Asia (Singapore) Pte has sold over 19 lakh scrips of private sector lender Yes Bank worth around Rs 69 crore. As per facts accessible with stock exchanges, MS offloaded 19,71,903 shares of Yes Bank via bulk transaction.

The scrips got sold at an average value of Rs 349.51 per share valuing the contract at Rs 68.91 crore. In a separate bulk contract, Morgan Stanley picked up 18,042 shares of the banking institution at rate of Rs 348.53 per scrip, aggregating the deal size at Rs 62.88 lakh.

At the end of the July-September quarterly period, MS had 79.09 lakh scrips, amounting to 2.19% stake, of the banking institution.

Morgan Stanley (NYSE:MS) is a well known global financial services company offering a wide variety of investment banking, securities, and investment management services. MS’s asset management business has more than $300 bln in assets under management and direction, catering primarily to IIs.