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Ted Choose, 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.
This is what the corporate reported:
- Earnings per share: $2.80 vs. $2.10 anticipated, based on LSEG
- Income: $18.22 billion vs. $16.7 billion, based on LSEG
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 document $18.22 billion.
Morgan Stanley shares popped virtually 5% Wednesday. They’re up practically 30% to date this 12 months.
Wall Road buying and selling desks have had excessive ranges of exercise within the quarter, whereas funding banking continues to see a resurgence in mergers and preliminary public choices. Shares at or close to document highs bolstered Morgan Stanley’s large wealth administration division as nicely.
Put collectively, Wall Road-centric banks like Morgan Stanley and peer Goldman Sachs are in a perfect atmosphere.
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 strains and areas and document leads to its prime brokerage enterprise that caters to hedge funds.
Mounted revenue buying and selling rose 8% to $2.17 billion, primarily matching the StreetAccount estimate.
Funding banking income within the quarter surged 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 fastened 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.
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 examine again for updates.
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