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MORGAN STANLEY GROUP REPORTS RESULTS

 NEW YORK, May 27 /PRNewswire/ -- Morgan Stanley Group Inc. (NYSE: MS) today announced net income of $198.8 million or $2.40 per common share on a primary basis for the quarter ended April 30, 1993. The first quarter performance compares to net income of $139.1 million or $1.62 per share on a primary basis for the quarter ended April 30, 1992.
 Net revenues (gross revenues less interest expense) for the first quarter of 1993 were $1,050.6 million vs. $808.4 for first quarter 1992. Fully diluted earnings per common share were $2.29 and $1.55 for the quarters ended April 30, 1993 and 1992, respectively. The 1993 first quarter results include a pre-tax charge of approximately $29 million in connection with the pending sale of Sweetheart Holdings, Inc.
 Morgan Stanley has signed a definitive agreement to sell Sweetheart, a leading producer of disposable food service products, to an investment group led by American Industrial Partners. The sale, which is subject to certain conditions, will eliminate the 1990 Morgan Stanley bridge loan to Sweetheart.
 The company announced the declaration by its board of directors of a quarterly dividend of 27 cents per common share. The dividend is payable June 24, 1993 to holders of record on June 7, 1993.
 Richard B. Fisher, chairman, and Robert F. Greenhill, president, said in a joint statement:
 "We are pleased with Morgan Stanley's first quarter
 earnings which resulted from excellent performance in
 each of our major businesses. Investment banking
 revenues increased during the quarter, due to growth in
 high-yield and structured debt underwriting volumes and
 a continuing strong equity new issues calendar. Sales
 and trading activity benefitted from our global market
 position and reflect a significant increase in our
 fixed income and foreign exchange trading that more
 than offsets reduced revenues from Japanese equity
 derivative products. Our asset management and global
 custody and clearing business units made outstanding
 contributions in the quarter reflecting growth in
 customer assets under management and administration."
 Total capital (stockholders' equity and long-term debt) at April 30, 1993 was $6.7 billion, including $3.4 billion of common and preferred stockholders' equity. Book value per common share was $38.09, based on quarter-end shares and share-equivalents of 77,130,090.
 Morgan Stanley Group Inc. is a global financial services firm with offices in New York, London, Tokyo and other principal financial centers.
 MORGAN STANLEY GROUP INC.
 Consolidated Statement of Income
 (Unaudited -- In thousands, except share data)
 Three Months Ended
 April 30,
 1993 1992
 Revenues:
 Investment banking $ 378,845 $ 270,421
 Principal transactions:
 Trading 369,780 291,880
 Investments 10,531 31,229
 Commissions 91,486 76,225
 Interest and dividends 1,281,131 1,138,799
 Asset management and administration 52,824 47,617
 Other 1,987 2,604
 Total revenues 2,186,584 1,858,775
 Interest expense 1,135,987 1,050,393
 Net revenues 1,050,597 808,382
 Expenses excluding interest:
 Compensation and benefits 524,199 399,041
 Occupancy and equipment 58,506 57,106
 Brokerage, clearing and exchange fees 47,876 38,217
 Communications 23,604 21,942
 Business development 29,483 23,948
 Professional services 25,878 20,859
 Other 22,975 19,392
 Total expenses excluding interest 732,521 580,505
 Income before income taxes 318,076 227,877
 Provision for income taxes 119,229 88,813
 Net income $ 198,847 $ 139,064
 Earnings applicable to common shares* $ 186,557 $ 126,699
 Average common and common equivalent
 shares outstanding(A) 77,889,047 78,241,821
 Primary earnings per share $ 2.40 $ 1.62
 Fully diluted earnings per share $ 2.29 $ 1.55
 (A) Amounts shown are used to calculate primary earnings per share.
 -0- 5/27/93
 /CONTACT: Charles B. Hintz (Investors), 212-703-7178, or Jeanne Donovan Andrews (Media), 212-703-4058, both of Morgan Stanley Group/
 (MS)


CO: Morgan Stanley Group Inc. ST: New York IN: FIN SU: ERN

SH -- NY025 -- 2823 05/27/93 09:45 EDT
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Publication:PR Newswire
Date:May 27, 1993
Words:659
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