Morgan Stanley (NYSE:MS) Makes Shuffle In Administration Before Reporting A Great 1Q2015

Morgan Stanley (NYSE:MS) has recently appointed Michael Levy as its new head of traditional asset management. The outgoing head, Arthur Lev, will now be the chairman of investment management division in the company. The news came just days before Morgan Stanley released an outstanding 1Q2015. The company exceeded all expectations to report $9.9 billion, compared to the analyst’s estimate of $9.19 billion. The reported EPS was 85 cents, 7 cents higher than expected.

Analyst predict major swings in the market… will it affect MS?

Michael Levy has been working at the firm for the past 17 years, with his last position being the head of Merchant Banking and Real Estate Investments. He will now be replaced by Ed Moriarty. The FY 2014 saw revenues from traditional asset management climb to $1.8 billion, a 6% increase from last year. Unfortunately, the company also saw a decline in the revenue from Levy’s ex-department. The drop was attributed to the new rules, which limited the investments the bank could make. Despite this downfall, the division accounted for 8% of total revenue.

The revenues have been increasing in the past years, with $377 billion in 2013 to $403 billion in 2014. Greg Fleming, from the company’s brokerage unit, hinted that they expect to raise the revenues to $500 billion by 2016. This does not seem like a farfetched idea, since the 1Q2015 has indicated that Morgan Stanley is moving in the right direction. Additionally, the shuffle in administration has been targeted to achieve this task.

The CEO at Morgan Stanley (NYSE:MS), James Gorman, stated that this had been one of the strongest quarters in many years since the recession. He also attributed the earnings to improved performance in different areas of the firm. The company has also reported a surge in revenues from sales and trading, with an increase in compensation and benefits spending.

Morgan Stanley (NYSE:MS) closed at $36.96, rising by 0.57%. The company currently trades 1.97 billion shares in the market, given its wide area of expertise. MS also reports a 52-week range of $29.02-$39.19.

John Eisler

John Eisler

John is a special projects and general assignment reporter, noted for breaking several exclusive stories.