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 NEW YORK, Nov. 19 ~PRNewswire~ -- Morgan Stanley Group Inc. (NYSE: MS) today announced net income of $110.6 million or $1.26 per common share on a primary basis for the quarter ended Oct. 31, 1992 compared to $121.8 million or $1.52 per share on a primary basis for the quarter ended Sept. 30, 1991. Fully diluted earnings per share were $1.21 and $1.45 in the third quarter of 1992 and 1991, respectively. Net revenues (gross revenues less interest expense) for the period were $751.5 million compared to $727.1 million for the third quarter of 1991.
 Consolidated net income for the nine months ended Oct. 31, 1992 was $368.6 million or $4.25 per share on a primary basis and $4.08 per share on a fully diluted basis. Net revenues for the period were $2,324.0 million. Results for the nine months ending Sept. 30, 1991 were net income of $342.7 million, earnings per share (on a primary basis) of $4.31, earnings per share (on a fully diluted basis) of $4.10, and net revenues of $2,144.0 million.
 The company also announced the declaration by its board of directors of a quarterly dividend of 24 cents per common share. The dividend is payable Dec. 17, 1992 to holders of record on Nov. 30, 1992.
 Richard B. Fisher, chairman, and Robert F. Greenhill, president, said in a joint statement:
 "While Morgan Stanley Group's net income this quarter was below that of a year ago, net income for the first nine months of this fiscal year was slightly ahead of that for the first nine months of 1991. Conditions were difficult in the financial markets for most of the third quarter, and included a major contraction in the volume of new equity offerings. Nevertheless, we think the third quarter's results reflect the value of our balanced mix of worldwide businesses in a volatile climate. Secondary revenues (combined trading revenues, commissions and net interest) declined 4 percent from their level in the third quarter of 1991.
 Strong results in foreign exchange, swaps and government bond trading were somewhat more than offset by reduced equity and commodities trading results. Investment banking revenues also declined moderately in the quarter. Equity securities offerings and merger activity decreased while debt issuance volumes increased. 1992's third quarter results include merchant banking investment revenues of $42.6 million, principally from the sale of the firm's interest in MS~Essex Holdings Inc. and an increase in the carrying value of the firm's investment in Kohl's Corporation. Morgan Stanley's asset management and custody and clearing businesses also had strong performances this quarter."
 Total capital (stockholders' equity and long-term debt) at Oct. 31, 1992, was $6.36 billion, including $3.20 billion of common and preferred stockholders' equity. Book value per common share was $34.84 based on quarter-end shares and share equivalents of 77,670,670.
 Morgan Stanley Group Inc. is a global financial services firm with offices in New York, London, Tokyo and other principal financial centers.
 Consolidated Statement of Income
 (In thousands, except share data - Unaudited)
 Periods ended Three Months Nine Months
 10~31~92 9~30~91 10~31~92 9~30~91
 Investment banking $182,284 $193,627 $736,917 $571,160
 Principal transactions:
 Trading 300,826 357,073 797,011 1,073,315
 Investments 42,581 -- 94,424 5,060
 Commissions 76,268 67,027 229,897 197,251
 Interest and dividends 968,651 1,075,406 3,562,943 3,028,314
 Asset management and
 administration 57,079 40,742 157,653 14,190
 Other 1,274 4,495 7,740 8,402
 Total revenues 1,628,963 1,738,370 5,586,585 4,997,692
 Interest expense 877,456 1,011,294 3,262,605 2,853,648
 Net revenues 751,507 727,076 2,323,980 2,144,044
 Expenses excluding interest:
 Compensation and
 benefits 379,606 361,357 1,150,253 1,069,171
 Occupancy and
 equipment 59,029 52,801 173,478 58,707
 Brokerage, clearing
 and exchange fees 43,715 33,385 125,439 95,220
 Communications 22,455 21,883 67,429 66,602
 Business development 26,361 23,141 76,575 70,039
 Professional services 24,133 20,344 70,110 58,700
 Other 20,576 19,038 62,015 59,092
 Total expenses excluding
 interest 575,875 531,949 1,725,299 1,577,531
 Income before
 income taxes 175,632 195,127 598,681 566,513
 Provision for
 income taxes 65,063 73,354 230,035 223,773
 Net income $110,569 $121,773 $368,646 $342,740
 Earnings applicable to
 common shares (A) $98,301 $114,452 $331,472 $324,060
 Average common and common
 equivalent shares
 outstanding(A) 77,899,704 75,444,762 77,996,757 75,134,556
 Primary earnings
 per share $1.26 $1.52 $4.25 $4.31
 Fully diluted earnings
 per share $1.21 $1.45 $4.08 $4.10
 (A) Amounts shown are used to calculate primary earnings per share.
 Note: Certain amounts within gross interest revenues and interest expense have been reclassified for the nine months ended Oct. 31, 1992. The adjustment has no impact on reported net revenues.
 -0- 11~19~92
 ~CONTACT: Charles B. Hintz, investor relations, 212-703-7178, Jeanne Donovan Andrews, media relations, 212-703-4058, both of Morgan Stanley Group~

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

SM -- NY035 -- 2802 11~19~92 10:51 EST
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Date:Nov 19, 1992

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