Morgan Stanley 4Q 2012 Core Pretax Earnings up 28%

Morgan Stanley had a robust 4Q 2012, with Core Pretax Earnings of $1,370 mil, which was an increase of 28% over the $1,070 mil earned in the 4Q 2011.  This solid 4Q 2012 operating performance was a marked improvement from the first 9 months of 2012.

Below here is a reconciliation of the 4Q 2012 and 4Q 2011 Pretax Income (Loss) to the Core Pretax Income for the same periods: 

	4Q 2012	4Q 2011	%
	mils of $s	mils of $s	Increase
Pretax Income (Loss) As Reported	859	(456)	288%
Adjustments
Settlement Loss with MBIA Insurance Corp		1,742
Derivative Valuation Loss (Gain)	511	(216)
Core Pretax Income	1,370	1,070	28%

For the year 2012, Morgan Stanley's Core Pretax Earnings were $4,917 mil, down 1% from the $4,943 mil earned in annual 2011. 

Below here is a reconciliation of the Annual 2012 and Annual 2011 Pretax Income to the Core Pretax Income for the same periods: 

	Annual	Annual	%
	2012	2011	Increase
	mils of $s	mils of $s	(Decrease)
Pretax Income As Reported	515	6,099	-92%
Settlement Loss with MBIA Insurance Corp		1,742
Loss on Japanese Joint Venture		783
Derivative Valuation Loss (Gain)	4,402	(3,681)
Core Pretax Income	4,917	4,943	-1%