Ted Choose, CEO of Morgan Stanley speaks on CNBC’s Squawk Field outdoors 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 most important margin in almost 5 years on booming equities buying and selling, funding banking and wealth administration outcomes.
This 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 stated revenue surged 45% from a yr earlier to $4.61 billion, or $2.80 per share. Income rose 18% to a report $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 report highs bolstered Morgan Stanley’s big wealth administration division as nicely.
Put collectively, Wall Avenue-centric banks like Morgan Stanley and peer Goldman Sachs are in a perfect atmosphere.
Morgan Stanley stated 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 report ends in its prime brokerage enterprise that caters to hedge funds.
Fastened revenue buying and selling rose 8% to $2.17 billion, basically matching the StreetAccount estimate.
Funding banking income within the quarter jumped 44% from a yr earlier to $2.11 billion, about $430 million greater than the StreetAccount estimate. The financial institution cited extra accomplished mergers, extra IPO exercise and extra mounted revenue fundraising as causes for the booming outcomes.
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 yr 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 creating. Please test again for updates.