Ted Choose, CEO Morgan Stanley, talking on CNBC’s Squawk Field on the World Financial Discussion board Annual Assembly in Davos, Switzerland on Jan. 18th, 2024.
Adam Galici | CNBC
Morgan Stanley on Wednesday topped analysts’ estimates for third quarter revenue as every of its three most important divisions generated extra income than anticipated.
Here is what the corporate reported:
- Earnings:$1.88 a share vs $1.58 LSEG estimate
- Income: $15.38 billion vs. $14.41 billion estimate
The financial institution stated revenue rose 32% to $3.2 billion, or $1.88 per share, and income jumped 16% to $15.38 billion.
Morgan Stanley had a number of tailwinds in its favor, beginning with buoyant markets that helped its large wealth administration enterprise, a rebound in funding banking after a dismal 2023, and powerful buying and selling exercise. The Federal Reserve started taking down charges within the quarter, which ought to encourage extra of the financing and merger exercise that Wall Road companies capitalize on.
“The agency reported a powerful third quarter in a constructive surroundings throughout our international footprint,” Morgan Stanley CEO Ted Choose stated within the launch.
The financial institution’s wealth administration division noticed income soar 14% from a 12 months earlier to $7.27 billion, exceeding the StreetAccount estimate by almost $400 million.
Fairness buying and selling income rose 21% to $3.05 billion, in contrast with the $2.77 billion estimate, whereas mounted earnings revenues edged 3% increased to $2 billion, additionally increased than the $1.85 billion estimate.
Funding banking income surged 56% from a 12 months earlier to $1.46 billion, exceeding the $1.36 billion estimate.
Funding administration, the agency’s smallest division, additionally exceeded expectations, posting a 9% improve in income to $1.46 billion, in contrast with the $1.42 billion estimate.
Shares of the financial institution superior 2.8% in premarket buying and selling.
Morgan Stanley’s Wall Road rivals additionally posted better-than-expected Wall Road income. JPMorgan Chase, Goldman Sachs and Citigroup topped estimates on robust income from buying and selling and funding banking.
This story is creating. Please test again for updates.