Ted Decide, CEO of Morgan Stanley speaks on CNBC’s Squawk Field exterior the World Financial Discussion board in Davos, Switzerland on Jan. 23, 2025.
Gerry Miller | CNBC
Morgan Stanley on Wednesday posted third-quarter earnings that beat expectations by the biggest margin in practically 5 years on booming equities buying and selling, funding banking and wealth administration outcomes.
Here is what the corporate reported:
- Earnings per share: $2.80 vs. $2.10 LSEG estimate
- Income: $18.22 billion vs. anticipated $16.70 billion
The financial institution mentioned revenue surged 45% from a 12 months earlier to $4.61 billion, or $2.80 per share. Income rose 18% to a file $18.22 billion.
Wall Avenue buying and selling desks have seen excessive ranges of exercise within the quarter, whereas funding banking continues to see a resurgence in mergers and IPOs. Shares at or close to file highs bolstered Morgan Stanley’s large wealth administration division as effectively.
Put collectively, Wall Avenue-centric banks like Morgan Stanley and peer Goldman Sachs are in an excellent setting.
Morgan Stanley mentioned equities buying and selling income jumped 35% to $4.12 billion, or $720 million greater than what analysts surveyed by StreetAccount had anticipated. The corporate cited elevated exercise throughout enterprise traces and areas and file leads to its prime brokerage enterprise that caters to hedge funds.
Fastened revenue buying and selling rose 8% to $2.17 billion, primarily matching the StreetAccount estimate.
Funding banking income within the quarter jumped 44% from a 12 months earlier to $2.11 billion, about $430 million greater than the StreetAccount estimate. The financial institution cited extra accomplished mergers, extra IPOs and extra mounted revenue fundraising as drivers for the quarter.
Wealth administration income rose 13% to $8.23 billion, about $500 million greater than anticipated, as rising asset ranges and transaction charges bolstered outcomes.
Shares of Morgan Stanley have climbed nearly 24% this 12 months earlier than Wednesday.
On Tuesday, JPMorgan Chase, Goldman, Citigroup and Wells Fargo every posted earnings that topped analysts’ expectations for earnings and income.
This story is growing. Please verify again for updates.
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