April 17, 2014 / 1:50 PM / 4 years ago

BRIEF-Morgan Stanley still plans to reach wealth margin next year

NEW YORK, April 17 (Reuters) - Morgan Stanley chief executive officer James Gorman and chief financial officer Ruth Porat said on a Thursday conference call with analysts:

* Morgan Stanley will “add meaningfully” to capital requests in future years for stress test--CEO Gorman

* Morgan Stanley could have dividend “two or three times” recently increased level based on earnings, share count--CEO Gorman

* Morgan Stanley aims to return 100 percent of earnings through buybacks, dividends over next several years--CEO Gorman

* Morgan Stanley tier 1 common equity ratio under Basel III would be 11.6 percent at March 31--CFO Porat

* Morgan Stanley’s supplementary leverage ratio under recent Fed proposal would be about 4.2 percent--CFO Porat

* Morgan Stanley expects to reach 5 percent supplemental leverage ratio requirement in 2015--CFO Porat

* Morgan Stanley’s Q1 lending rose with mortgages up 10 percent, securities loans up 9 percent--CFO Porat

* Morgan Stanley’s loans were up thanks to increased use of wealth deposits--CFO Porat

* Morgan Stanley’s strength in commodities, corporate credit, mortgages helped fixed-income trading--CFO Porat

* Morgan Stanley fixed-income revenue up slightly year-over-year excluding physical oil businesses it plans to sell--CFO Porat

* Morgan Stanley welcomes improvements to equity market structure related to high-frequency trading--CFO Porat

* Morgan Stanley rates trading revenue was down year-over-year, up from fourth quarter--CFO Porat

* Morgan Stanley rates trading business faced lower client trading activity and “tougher market” like others--CFO Porat

* Morgan Stanley prime brokerage balances are highest since the financial crisis--CFO Porat

* Morgan Stanley return on tangible common equity was 9.8 percent in first quarter--CFO Porat

* Morgan Stanley is still on track to hit expense ratio target by end of 2014--CFO Porat

* Morgan Stanley expense ratio in Q1 was 75 percent, below 79 percent year-end goal--CFO Porat

* Morgan Stanley still plans to reach 22 to 25 percent wealth margin next year with increased lending, cost controls--CFO Porat Source text for Eikon: Further company coverage: (Reporting by Lauren Tara LaCapra)

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