U.S. investment bank Morgan Stanley (MS) has reported third-quarter financial results that beat analysts’ consensus forecasts on the top and bottom lines.
The New York City-based bank reported earnings per share (EPS) of $1.88 U.S., which was far ahead of the $1.58 U.S. estimated on Wall Street. The profit was up 32% from a year earlier.
Revenue in the quarter totaled $15.38 billion U.S., which topped the $14.41 billion U.S. that was expected among analysts.
Management at Morgan Stanley said the investment bank benefitted during the third quarter from growth in its wealth management division and robust stock trading.
Wealth management revenue came in at $7.27 billion U.S., up 14% from $6.40 billion U.S. a year ago.
Institutional securities, which includes stock trading, reported Q3 revenue of $6.82 billion U.S., up 20% compared with $5.67 billion U.S. a year earlier.
Investment banking is also providing a tailwind to Morgan Stanley as deals on Wall Street rebound after a dismal 2023 and 2022.
Morgan Stanley's investment banking revenue rose 56% in Q3, besting rival Goldman Sachs (GS), which posted a 20% increase in investment banking fees during the quarter.
The bank said that it expects mergers and acquisitions (M&A) and initial public offerings (IPOs) to continue rising in coming months as lower interest rates encourage more financing.
Morgan Stanley’s stock rose 3% in premarket trading on news of its Q3 financial results. Prior to today (Oct. 16), the bank’s stock had gained 20% this year to trade at $112.22 U.S. per share.
