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 biggest margin in practically 5 years on booming equities buying and selling, funding banking and wealth administration outcomes.
Here is what the corporate reported:
- Earnings per share: $2.80 vs. $2.10 anticipated, in accordance with LSEG
- Income: $18.22 billion vs. $16.7 billion, in accordance with LSEG
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.
Morgan Stanley shares popped virtually 5% in premarket buying and selling. They had been up roughly 24% this yr as of Tuesday’s shut.
Wall Avenue 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 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 super setting.
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 strains 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 surged 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 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.
