Page 24 - Aruba Today
P. 24
A24
BUSINESSWednesday 20 January 2016
Morgan Stanley swings to profit in 4Q, beating expectations
KEN SWEET had a profit of $908 million Stanley to earn 33 cents advisory revenue was $516 much more focused on the
AP Business Writer in the three month period per share, according to million in the quarter com- U.S.
NEW YORK (AP) — Morgan ending in December, or FactSet. pared with $488 million a The company also an-
Stanley swung back to a 39 cents per share. That’s Morgan Stanley’s institu- year earlier. nounced a major expense
profit in the fourth quarter compared to a loss of $1.6 tional securities division, Morgan Stanley said it will reduction program, called
as the bank moved on from billion, or $1.37 per share. which includes the bank’s continue to unwind its com- Project Streamline, de-
large legal settlements, its Morgan Stanley had $3.1 trading desk and invest- modity and fixed income signed to simply the legal
wealth management divi- billion in legal expenses in ment banking businesses, trading businesses, which structure of Morgan Stan-
sion improved and invest- 2014, when the bank set- had a mixed quarter due have been a major drag ley’s business and move
ment bank advisory activ- tled with state and federal to the difficult trading envi- on the company’s results in large portions of its back of-
ity picked up. The bank also regulators over its role in the ronment last quarter. While recent years. The company fice infrastructure to lower
announced a major reduc- housing bubble and subse- equity sales and trading plans to cut 25 percent of cost parts of the world.
tion in its fixed income and quent financial crisis. revenues rose to $1.8 billion its workforce and stop trad- The goal is to get Morgan
commodities trading busi- Removing an adjustment from $1.6 billion a year ear- ing products that the bank Stanley’s return on eq-
ness, as the bank contin- tied to the value of Morgan lier, bond trading and com- cannot build a team to spe- uity, the firm’s measure of
ues to move away from Stanley’s debt, the bank modities sales and trading cialize in. Morgan Stanley profitability, to between 9
riskier businesses. earned $986 million, or 43 fell to $550 million from $599 CEO James Gorman, in a percent and 11 percent
The New York-based invest- cents per share. Analysts million in 2014. Morgan call with investors, said the from its current level of 7
ment bank said Tuesday it were looking for Morgan Stanley’s investment bank restructured business will be percent.q
Bank of America profit grows, but says growth is a struggle
KEN SWEET This photo shows a branch office of Bank of America, in New York. Bank of America reported fi- has been difficult. Bank
AP Business Writer nancial earnings on Tuesday, Jan. 19, 2016. of America is more heav-
NEW YORK (AP) — Bank of ily exposed to low interest
America reported higher (AP Photo/Mark Lennihan) rates than other big banks
profits on better perfor- because it depends so
mance in consumer bank- earlier. est earnings in a decade But in a conference call heavily on its large retail
ing and lower costs, but BofA CEO Brian Moynihan for the bank, were the re- with investors, the bank’s banking business, and less
the bank acknowledged said in a prepared state- sult of “doing more busi- Chief Financial Officer Paul so on trading.
that it is struggling to in- ment that results for the ness with each customer Donofrio said that grow- “Although the U.S. econo-
crease revenue despite an year, which were the high- and client.” ing company revenue my is improving slowly, rev-
improving U.S. economy. enue growth remains chal-
BofA said Tuesday it earned lenging,” he said.
a profit of $3.01 billion, or 28 It’s a problem shared by
cents per share, after pay- much of corporate Ameri-
ment of dividends to pre- ca in recent quarters, and
ferred shareholders. That’s it is a major concern for in-
an improvement of nearly vestors.
10 percent over the $2.74 For example, revenue at
billion, or 25 cents per share BofA’s consumer bank-
the bank earned during ing business, by far its larg-
the same period last year. est business, rose by just
The results beat expecta- 0.4 percent in the quarter
tions. Analysts surveyed by to $7.79 billion The division
Factset expected earnings was able to boost profits,
of 27 cents per share, on though, by 9 percent. It re-
average. ported net income of $1.8
For the year, Bank of Amer- billion, versus $1.65 billion
ica earned $14.41 billion, a year earlier, as depos-
up from $3.38 billion a year its and loans grew in the
quarter. q
UnitedHealth 4Q profit drops, still tops Street 4Q forecasts
TOM MURPHY up nearly 40 percent of the and doctor’s offices. lion in the previous year’s than-expected medical
AP Business Writer company’s annual total. quarter. Earnings, adjusted costs and good admin-
UnitedHealth Group closed Health insurance is United- Operating earnings from for amortization costs, to- istrative expense control
2015 with a 19-percent Health’s main business, but taled $1.40 per share. helped the company’s re-
drop in fourth-quarter prof- it has been leaning more Optum climbed to $1.5 bil- Analysts expected, on av- sults.
it, but the nation’s largest on its Optum segment for erage, earnings of $1.37 per But struggles on the ACA’s
health insurer still topped growth, especially as it lion from $1 billion in last share, according to Zacks insurance exchanges bal-
Wall Street’s expectations takes financial hits from Investment Research. anced some of the com-
thanks in part to growth coverage it sells on the Af- year’s quarter, stoked in Total revenue jumped 30 pany’s gains.
outside of its core business. fordable Care Act’s public percent to $43.6 billion, UnitedHealth booked a
The Minnetonka, Minneso- insurance exchanges. Op- part by a big acquisition, which surpassed analyst $245-million charge in
ta, company said Tuesday tum runs the company’s expectations for $43.1 bil- the fourth quarter for ad-
that operating earnings pharmacy benefits man- while operating earnings lion. vanced recognition of loss-
from its Optum segment agement business, pro- BMO Capital Markets an- es it expects this year from
jumped 50 percent in the vides technology services from the company’s Unit- alyst Jennifer Lynch in a coverage it sells on the
quarter and now makes and also operates clinics research note that better- exchanges.q
edHealthcare insurance
segment dropped 44 per-
cent to $949 million, from
$1.7 billion.
Overall, UnitedHealth
earned $1.22 billion in the
final three months of the
year, down from $1.51 bil-
