Morgan Stanley (MS) earnings Q3 2024

Morgan Stanley on Wednesday topped analysts’ estimates for third-quarter revenue as every of its three essential divisions generated extra income than anticipated.

Here is what the corporate reported:

• Earnings:$1.88 a share vs $1.58 LSEG estimate
• Income: $15.38 billion vs. $14.41 billion estimate

The financial institution stated revenue rose 32% to $3.2 billion, or $1.88 per share, and income jumped 16% to $15.38 billion.

Morgan Stanley had a number of tail winds in its favor, beginning with buoyant markets that helped its huge wealth administration enterprise, a rebound in funding banking after a dismal 2023, and robust buying and selling exercise. The Federal Reserve started taking down charges within the quarter, which ought to encourage extra of the financing and merger exercise that Wall Avenue corporations capitalize on.

“The agency reported a robust third quarter in a constructive surroundings throughout our international footprint,” Morgan Stanley CEO Ted Choose stated within the launch.

Shares of the financial institution rose 7.5% in early buying and selling.

The financial institution’s wealth administration division noticed income leap 14% from a 12 months earlier to $7.27 billion, exceeding the StreetAccount estimate by practically $400 million.

Fairness buying and selling income rose 21% to $3.05 billion, in contrast with the $2.77 billion estimate, whereas fastened revenue income edged 3% greater to $2 billion, additionally greater than the $1.85 billion estimate.

Funding banking income surged 56% from a 12 months earlier to $1.46 billion, exceeding the $1.36 billion estimate.

Funding administration, the agency’s smallest division, additionally exceeded expectations, posting a 9% enhance in income to $1.46 billion, modestly greater than the $1.42 billion estimate.

Morgan Stanley’s Wall Avenue rivals additionally posted better-than-expected Wall Avenue income. JPMorgan Chase, Goldman Sachs and Citigroup topped estimates on sturdy income from buying and selling and funding banking.

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