Morgan Stanley on Thursday topped expectations for third-quarter revenue and income because the agency posted file ends in funding banking and asset administration.
Listed below are the numbers:
- Earnings: $1.98 a share vs the $1.68 a share estimate of analysts surveyed Refinitiv
- Income: $14.75 billion vs. the $14 billion estimate
“The Agency delivered one other very sturdy quarter, with strong revenues and improved effectivity,” CEO James Gorman stated within the launch. “We had standout efficiency of our built-in funding financial institution and file web new belongings of $135 billion in wealth administration.”
Shares of the financial institution climbed 2.2% in premarket buying and selling.
Income and web earnings jumped greater than 25% from a yr in the past, aided by Gorman’s acquisitions of E-Commerce and Eaton Vance, which bulked up the corporations’ wealth and asset administration divisions.
Whereas rival banks have reported a slowdown in third-quarter mounted earnings buying and selling income, Morgan Stanley’s power has historically been in its equities franchise, the most important on the planet.
Equities buying and selling income jumped 24% from a yr earlier to $2.88 billion, exceeding the estimate by greater than $500 million. Mounted earnings income dropped 16% to $1.64 billion, edging out the $1.53 billion estimate.
One other space that has flourished is funding banking, propelled by strong mergers and IPO exercise, and Morgan Stanley is a prime participant there as nicely. Rival advisor JPMorgan Chase posted file funding banking charges within the third quarter.
Morgan Stanley’s funding banking franchise delivered within the quarter, posting a 67% improve in income to a file $2.85 billion, exceeding the StreetAccount estimate by greater than $600 million, helped by sturdy mergers advisory charges.
Shares of the financial institution have climbed 44% this yr earlier than Thursday, exceeding the 36% rise of the KBW Financial institution Index.
JPMorgan topped expectations Wednesday, helped by a $1.5 billion enhance from better-than-expected mortgage losses. Financial institution of America posted outcomes Thursday that exceeded analysts’ expectations because it benefited from better-than-expected mortgage losses and file advisory and asset administration charges.
This story is growing. Please verify again for updates.
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