Ted Big, CEO of Morgan Stanley, speaks on CNBC’s Squawk Box at the World Economic Forum’s annual meeting on January 18, 2024 in Davos, Switzerland.
Adam Kalisi | CNBC
Morgan Stanley It topped analysts’ estimates for third-quarter profit on Wednesday as each of its three main divisions posted better-than-expected revenue.
Here’s what the company announced:
- revenue: $1.88 per share vs $1.58 LSEG valuation
- Revenue: $15.38 billion and $14.41 billion estimate
Bank He said Profit rose 32% to $3.2 billion, or $1.88 per share, and revenue rose 16% to $15.38 billion.
Morgan Stanley had several tailwinds in its favor, starting with buoyant markets that helped its massive wealth management business rebound from a dismal 2023 and strong trading activity. The Federal Reserve began cutting rates in the quarter, which should encourage financing and merger activity that Wall Street firms can invest in.
“The firm reported a strong third quarter amid a constructive environment across our global footprint,” Morgan Stanley CEO Ted Pick said in the release.
The firm’s wealth management segment revenue rose 14% from a year earlier to $7.27 billion, beating Street estimates by nearly $400 million.
Equity trading revenue rose 21% to $3.05 billion, compared with an estimate of $2.77 billion, while fixed income revenue rose 3% to $2 billion, beating estimates of $1.85 billion.
Investment banking revenue rose 56% from a year earlier to $1.46 billion, beating estimates of $1.36 billion.
The firm’s smallest division, investment management, also beat expectations, with revenue up 9% to $1.42 billion on estimates of $1.5 billion.
The bank’s shares advanced 2.8% in premarket trade.
Morgan Stanley’s Wall Street rivals also posted better-than-expected Wall Street earnings. JP Morgan Chase, Goldman Sachs And Citigroup It topped the ratings on strong earnings from trade and investment banking.
This story is developing. Check back for updates.
