Morgan Stanley beat analysts’ estimates for third-quarter revenue and profits, fueled by better-than-expected results from Pay’s Wall Street trading operations.
The bank said in a release on Thursday that profits rose 25% to 2. 2.72 billion, or 1. 1.66 per share, from the start of the year, exceeding analysts’ estimates of િ 1.28 billion surveyed by Refinitive. That’s 11 11.7 billion in revenue, up 16% from a year earlier and 1 billion more than estimated.
Morgan Stanley, Wall Street’s most aggressive acquirer with a billion 20 billion takeover this year, appeared to be firing on all cylinders. Pay firm traders performed, generating more than 400 400 million in revenue than expected by analysts, mostly from bond trading desks.
But the bank also tops the list in its asset management and investment management departments, each generating more than the expected revenue of 200 200 million.
“We made strong quarterly earnings as markets remained active during the summer months, and our balanced business model continues to deliver consistent, high returns,” CEO James Gorm said in the release.
CFO John Pruez told analysts that the bank’s fixed-income business has the highest third-quarter revenue in a decade, hitting a record financial crisis behind total pay-revenue so far this year.
Despite beating expectations, the firm’s stock fell 1.4% in pre-market trading. Shares of Morgan Stanley are almost unchanged as of Wednesday this year, leaving behind a 31% decline in the KBW Bank Index.
Under Gorman, Morgan Stanley has emphasized its asset management department, which benefits from growing markets as fees generally go up with assets under management. It has doubled its pressure to diversify from the traditional strengths of Morgan Stanley’s trading and investment banking.
Last week it announced that its bank was acquiring Eaton Vance at 7 7 billion, adding to the bank’s three major industries, Hift and Scale, the smallest of investment management. In February, he announced a બ 13 billion takeover of discount brokerage e-trade.
Analysts had high expectations for the firm’s trading for operations after both JPMorgan Chase and Goldman Sachs beat estimates of higher-than-expected market earnings.
Morgan Stanley is the sixth largest U.S. quarterly earner. Is the last of the banks. JPMorgan, Goldman Sachs and Citigroup beat analysts’ profit expectations as they cut loan-loss provisions. Companies struggled with the impact of lower interest rates as Bank of America and Wells Fargo were disappointed.
Here’s how the company did it:
Earnings: 66 1.66 per share, analysts surveyed by Refinitive estimate $ 1.28.
Revenue: 7 11.7 billion, vs. 6. 10.64 billion.
Wealth Management: 66 4.66 Billion Estimated Revenue 4.66 Billion from Factset.
Management of investments: Revenue of 6 1.06 billion estimated at નો 6,856 million.
Trading: Equities earnings of 19 2.26 billion, estimated at 2. 19.219 billion, સ્થ 1.92 billion in fixed income of સ્થ 1.59 billion.
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