Investment bank Morgan Stanley (MS) has reported third-quarter financial results that beat Wall Street forecasts.
The New York-based firm announced earnings per share (EPS) of $3.03 U.S., which topped the $2.91 U.S. expected among analysts.
Revenue in the July through September quarter totaled $20.34 billion U.S., which surpassed the $19.95 billion U.S. consensus estimate.
The leading Wall Street bank said its profit rose 6.5% from a year earlier, while its revenue climbed 12% year-over-year.
Management said that Morgan Stanley benefitted in the third quarter from strong equities trading, with revenue from trading stocks exceeding expectations by $909 million U.S.
The firm’s trading division, a key business for Morgan Stanley, posted a 41% increase in revenue to $5.79 billion U.S. during the quarter.
In its earnings release, Morgan Stanley cited strength across its equities products and regions but cited Asia as a source of particular strength in the third quarter.
However, fixed income trading revenue at the bank declined 7% to $2.01 billion U.S., driven largely by decreases in credit and commodities.
Like rival Goldman Sachs, Morgan Stanley has benefitted this year from a booming stock market, fueled by the artificial intelligence (A.I.) buildout.
Morgan Stanley has also been a lead underwriter on several major deals this year, including SpaceX’s record-setting initial public offering (IPO).
The bank is reported to have earned $100 million U.S. in investment-banking fees as lead underwriter of the SpaceX market debut.
Analysts and investors have begun to question the outlook for mergers and acquisitions (M&A) and IPOs for the rest of this year amid rising interest rates and bond yields.
MS stock has gained 3% this year to trade at $186.64 U.S. per share.
