Morgan Stanley (NYSE:MS) stock fell 3.78% (As on January 16, 11:13:47 AM UTC-4, Source: Google Finance) after the company’s profit dropped in the fourth quarter, hurt by a combined $535 million in one-time charge that offset gains from a rebound in investment banking activity. Its net income fell to $1.5 billion, in the three months ended Dec. 31, compared with $2.2 billion, a year ago. Morgan Stanley’s pre-tax income for the fourth quarter included $535 million of charges, $286 million related to an FDIC special assessment, and a $249 million legal charge related to a specific matter. Standardized Common Equity Tier 1 capital ratio was 15.2%. The Firm delivered full year ROTCE of 12.8%.

Moreover, Institutional Securities reported net revenues for the current quarter of $4.9 billion compared with $4.8 billion a year ago. Advisory revenues were essentially unchanged from a year ago reflecting completed M&A activity in the current quarter. Equity underwriting revenues were essentially unchanged from a year ago. Fixed income underwriting revenues increased 25% from a year ago on higher investment grade issuances. Wealth Management net revenues of $6.6 billion in the current quarter were essentially unchanged from a year ago. Asset management revenues increased from a year ago reflecting higher asset levels and the impact of positive feebased flows. Transactional revenues were essentially unchanged excluding the impact of mark-to-market on investments associated with DCP. Net interest income decreased from a year ago driven by changes in deposit mix, partially offset by higher interest rates. Investment Management net revenues of $1.5 billion were essentially unchanged from a year ago. Pre-tax income was $265 million compared with $214 million a year ago.

MS in the fourth quarter of FY 23 has reported the adjusted earnings per share of 85 cents, missing the analysts’ estimates for the adjusted earnings per share of $1.08. The company had reported the adjusted revenue growth of 35.9 percent to $12.9 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $12.79 billion.

Additionally, the company declared a $0.85 quarterly dividend per share, payable on February 15, 2024 to common shareholders of record on January 31, 2024. The Firm repurchased $1.3 billion of its outstanding common stock during the quarter, and $5.3 billion during the year as part of its Share Repurchase Program.