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Morgan Stanley Q1 Credit Loss Provision Jumps To $135 Million On 'Weakening Macroeconomic Forecast,' Equity Revenue Jumps 45%

Morgan Stanley Q1 Credit Loss Provision Jumps To $135 Million On 'Weakening Macroeconomic Forecast,' Equity Revenue Jumps 45%

Yahoo11-04-2025

On Friday, Morgan Stanley (NYSE:MS) reported a first-quarter 2025 EPS of $2.60, up from $2.02 a year ago and beating the consensus of $2.21. Net earnings increased to $4.16 billion from $3.14 billion.
The U.S. bank reported first-quarter revenue of $17.74 billion, up 17% year over year, beating the consensus of $16.57 billion.
Morgan Stanley's provision for credit losses jumped to $135 million, primarily driven by growth in secured lending facilities and in the corporate loan portfolio and the impact of a weakening macroeconomic forecast.
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The firm's expense efficiency ratio was 68% in Q1 of 2025 compared to 71% a year ago. Expenses for the quarter included $144 million of severance costs related to a March employee action across business segments.
Morgan Stanley delivered a Return on Tangible Common Equity of 23% during the first quarter and 19.7% a year ago.
Institutional Securities reported net revenues of $9.0 billion, reflecting record performance in Equity and strong Investment Banking results on higher fixed-income underwriting.
Investment Management results reflect net revenues of $1.6 billion, primarily driven by asset management fees on higher average assets under management (AUM) of $1.7 trillion. The quarter included positive long-term net flows of $5.4 billion.
Equity net revenues increased 45% to $4.13 billion. The company said, 'Record Equity net revenues reflect increases across business lines and regions, particularly in Asia, with outperformance in prime brokerage and derivatives driven by strong client activity amid a more volatile trading environment.'
Wealth Management reported net revenues of $7.3 billion in the current quarter compared with $6.9 billion a year ago. The business added net new assets of $94 billion, and fee-based asset flows were $30 billion for the quarter.
Asset management revenues increased 15% to $4.39 billion on higher asset levels and the cumulative impact of positive fee-based flows.
Ted Pick, Chairman and Chief Executive Officer, said, 'The Integrated Firm delivered a very strong quarter with record net revenues of $17.7 billion and EPS of $2.60, and an ROTCE of 23.0%. Institutional Securities strong performance was led by our Markets business with Equity reporting a record $4.1 billion in revenues. Total client assets of $7.7 trillion across Wealth and Investment Management were supported by $94 billion in net new assets. These results demonstrate the consistent execution of our clear strategy to drive durable growth across our global footprint.'
Price Action: MS stock is up 1.32% at $107.99 at the last check Friday.
Also Read:Photo by Taljat David via Shutterstock
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This article Morgan Stanley Q1 Credit Loss Provision Jumps To $135 Million On 'Weakening Macroeconomic Forecast,' Equity Revenue Jumps 45% originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Oklo Selected as Intended Awardee to Provide Clean, Reliable Power to Eielson Air Force Base in Alaska
Oklo Selected as Intended Awardee to Provide Clean, Reliable Power to Eielson Air Force Base in Alaska

Yahoo

time19 minutes ago

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Oklo Selected as Intended Awardee to Provide Clean, Reliable Power to Eielson Air Force Base in Alaska

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The words "anticipate," "believe," "continue," "can," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" or, in each case, their negative or other variations or comparable terminology, and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning, among other things, the benefits of the proposed acquisition, results of operations, financial condition, liquidity, prospects, growth, strategies and the markets in which Oklo operates. 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View source version on Contacts Media and Investor Contact for Oklo: Bonita Chester, Head of Communications and Media at media@ Investor Contact: Sam Doane, Director of Investor Relations at investors@ Sign in to access your portfolio

Illicit Cigarettes in European Union at Highest Level Since 2015, KPMG Study Shows
Illicit Cigarettes in European Union at Highest Level Since 2015, KPMG Study Shows

Business Upturn

time20 minutes ago

  • Business Upturn

Illicit Cigarettes in European Union at Highest Level Since 2015, KPMG Study Shows

Stamford, Conn., United States: Smokers in the European Union (EU) consumed 38.9 billion illicit cigarettes in 2024, a 10.8% increase versus 2023, with serious repercussions for tax revenues, crime rates, and public health. France, the largest illicit market in Europe, reached 18.7 billion illicit cigarettes consumed last year, 37.6% of total consumption. Adding 10.2 ppt year-on-year, the Netherlands saw the largest increase in illicit cigarettes share, which doubled to 17.9% of total consumption. Countries such as Bulgaria, Greece, Italy and Portugal—andUkraine, outside the EU—have shown sizeable decreases in illicit consumption in 2024. Greece and Ukraine, in particular, saw as much as 30% declines vs. 2023. PMI calls for evidence-based regulation, predictable fiscal regimes, and strict law enforcement to address the roots of illicit trade while promoting economic stability and public health. Evidence shows that excessive tobacco control policies may be driving smokers to the black market. Philip Morris International Inc. (NYSE: PM) today issues an urgent call for effective policymaking to counter the growing threat of illicit trade in the EU. In 2024, 38.9 billion illicit cigarettes were consumed in the region—the highest level since 2015—accounting for 9.2% of total cigarette consumption, with governments losing as much as €14.9 billion in tax revenues at a time when many countries face intense economic pressures. PMI believes that exacerbating the issue are steep and abrupt tax increases, benefitting criminals who supply unregulated, untaxed and inferior products, including counterfeits, at a lower price. To combat this growing threat, PMI urges the adoption of evidence-based regulation with balanced and predictable taxation through tax calendars, continued public-private collaboration and enhanced support of regional and national law enforcement agencies, as criminal organizations dealing in illicit cigarettes have cemented their presence in higher-priced Western European countries. According to the 2024 KPMG study, commissioned by Philip Morris Products SA, a large number of counterfeit cigarettes were consumed in the EU in 2024: 15.3 billion, a 20.2% increase vs. 2023. Additionally, so-called 'illicit whites'—legally manufactured cigarettes smuggled across borders to countries where they have limited or no distribution—reached 8.2 billion. 'The illicit tobacco trade threatens the European economy, public health, security and social stability; today, higher-taxed and higher-priced markets such as France and the Netherlands are especially impacted by illegally imported and counterfeit goods,' said Christos Harpantidis, PMI's Senior Vice President, External Affairs. 'Its massive socioeconomic impact negatively affects tax collection, job creation, and legitimate businesses, the engine of our European economies. The availability of cheap, unregulated cigarettes in the underground economy also impairs efforts to reduce smoking rates and achieve a smoke-free future.' The 2024 KPMG report indicates the increase in illicit cigarette consumption was primarily driven by France and the Netherlands. The study points to an especially alarming situation in France, where 18.7 billion illicit cigarettes were consumed in 2024, almost 7.8 billion of which were counterfeits. In the Netherlands, illicit cigarette volumes increased drastically, by 1.1 billion—more than doubled in a year—reaching 17.9% of total consumption. Had these cigarettes been legally purchased, an additional €9.4 billion would have been raised in taxes in France and almost €900 million in the Netherlands. In contrast, countries such as Bulgaria, Greece, Italy and Portugal—and Ukraine, outside the EU—have made significant progress in curbing the illicit tobacco market. Greece, for instance, had a 6.2 ppt drop in illicit cigarette consumption in 2024, to 17.5%—the largest decrease the country has seen in a decade. 'Predictable tax regimes and robust support for local law enforcement actions have proven an effective policy recipe: We now know how to effectively counter the criminal entities that engage in the illicit manufacturing, distribution, and sale of consumer products. Other countries in the region should emulate that approach to get control over this dangerous trend,' said Massimo Andolina, PMI's President, Europe Region. 'This is the way forward if we are serious about defeating the illicit tobacco trade in our continent, which harms Europe's economies, undermines European competitiveness and growth, and opens the door to other criminal activities. Citizens cannot afford to be deprived of much-needed state revenues in this critical moment for Europe, which are being lost rather than applied to key issues such as defense, internal security, and social programs.' Illicit trade affects the whole of Europe Across the 38 European countries included in KPMG's study (the 27 EU member states, as well as Albania, Bosnia and Herzegovina, Kosovo, Moldova, Montenegro, North Macedonia, Norway, Serbia, Switzerland, Ukraine, and the United Kingdom), 52.2 billion illicit cigarettes were consumed in 2024, accounting for 10.0% of total consumption. 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It fuels ruthless criminal gangs, typically impacting the most vulnerable communities and populations. It deprives governments of critical revenues needed to fund public services, including security, defense and social services. And its proceeds facilitate other serious crimes such as human trafficking, corruption, and money laundering. For PMI, eliminating the illicit tobacco and nicotine trade has been a long-standing priority. The company implements preventive and protective measures and works with the public and private sectors to advance efforts to address this global issue. As PMI progresses on its commitment to deliver a smoke-free future—a future without cigarettes, by far the most harmful way to consume nicotine—it is increasing efforts to secure its supply chain and the products it sells and to protect consumers and its brands from smugglers and counterfeiters. PMI works closely with law enforcement agencies and other organizations worldwide to root out and shut down illegal activities, including counterfeiting and smuggling. A detailed overview of the results, country profiles and methodology of the KPMG study is available here. For more information about PMI's illicit trade prevention efforts, visit Note to editors Definitions of illicit cigarette categories, as detailed in the KPMG report: Counterfeit: 'Cigarettes that are illegally manufactured and sold by a party other than the original trademark owner.' Illicit whites: 'Cigarettes that are usually manufactured legally in one country/market but which the evidence suggests have been smuggled across-borders during their transit to the destination market under review where they have limited or no legal distribution and are sold without payment of tax.' C&C: 'Counterfeit and contraband, including illicit whites. Contraband refers to genuine products that have been either bought in a lower-tax country and which exceed legal border limits or acquired without taxes for export purposes to be illegally re-sold (for financial profit) in a higher priced market.' Other C&C: 'Other C&C comprises contraband which does not fall within the Illicit Whites definition. It is often Duty Paid product from both EU27 and non-EU27 countries. There may also be counterfeit of brands that are not trademark-owned by participant manufacturers.' Philip Morris International: A Global Smoke-Free Champion Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company's current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch, and e-vapor products. As of December 31, 2024, PMI's smoke-free products were available for sale in 95 markets, and PMI estimates they were used by 38.6 million adults around the world. The smoke-free business accounted for 42% of PMI's first-quarter 2025 total net revenues. Since 2008, PMI has invested over $14 billion to develop, scientifically substantiate, and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match's General snus and ZYN nicotine pouches and versions of PMI's IQOS devices and consumables – the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumablesand General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness and healthcare areas and aims to enhance life through the delivery of seamless health experiences. References to 'PMI', 'we', 'our', and 'us' mean Philip Morris International Inc., and its subsidiaries. For more information, please visit and View source version on Disclaimer: The above press release comes to you under an arrangement with Business Wire. Business Upturn takes no editorial responsibility for the same.

Nvidia Ignites Quantum Stocks Rally With Bold Forecast at Paris Event
Nvidia Ignites Quantum Stocks Rally With Bold Forecast at Paris Event

Yahoo

time24 minutes ago

  • Yahoo

Nvidia Ignites Quantum Stocks Rally With Bold Forecast at Paris Event

June 11 - Quantum-focused stocks climbed in early trading Wednesday after Nvidia (NVDA) Chief Executive Jensen Huang said the sector is approaching a critical phase in its development. Speaking at the GTC conference in Paris, Huang said quantum computing is nearing an inflection point, citing growing progress in making the technology more applicable for real-world problems. He also highlighted Nvidia's Cuda Q platform, a quantum computing service introduced to support further industry growth, according to a Wednesday press release. Warning! GuruFocus has detected 3 Warning Signs with RGTI. Huang said quantum systems, which process data using qubits rather than traditional bits may soon be capable of tackling meaningful challenges across industries. IonQ (NYSE:IONQ) shares advanced about 4% following the remarks, while Rigetti Computing (NASDAQ:RGTI) rose 5%. Quantum Computing (NASDAQ:QUBT) jumped 8%, and both D-Wave Quantum (NYSE:QBTS) and Arqit Quantum (ARQQ) added nearly 3%. Huang's comments mark a shift in tone. In January, he said practical use cases for quantum computing were still decades away. But by March, he revised that outlook during Nvidia's first Quantum Day, suggesting faster progress than previously expected. Earlier this week, Nvidia said it partnered with IonQ, Amazon Web Services, and AstraZeneca to develop a quantum-enhanced workflow in computational chemistry. This article first appeared on GuruFocus.

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