Ted Pick, co-president of Morgan Stanley, speaks during a Bloomberg Television interview in New York, U.S., Thursday, Oct. 26, 2023.
Jeenah Moon | Bloomberg | Getty Images
Morgan Stanley said second-quarter earnings and revenue beat analysts' estimates due to stronger-than-expected investment banking and trading results.
Here's what the company reported:
- Earnings: $1.82 per share vs. LSEG's $1.65 per share estimate
- Revenue: $15.02 billion, versus an estimate of $14.3 billion
The bank said profit rose 41% from the same period a year earlier to $3.08 billion, or $1.82 per share, thanks to a rebound in activity on Wall Street. Revenue rose 12% to $15.02 billion.
Equity trading revenue rose 18% to $3.02 billion, beating StreetAccount's estimate by about $330 million. Fixed-income trading rose 16% to $1.99 billion, beating the estimate by $130 million.
“The company had another strong quarter in an improving capital markets environment,” CEO Ted Pick said in the statement. “We continue to execute on our strategy and remain well positioned to deliver long-term growth and value for our shareholders.”
Morgan Stanley is likely to benefit from its Wall Street-focused business model.
The bank's huge wealth management business will be helped by high stock market values, which inflate the management fees the bank charges.
On top of that, investment banking activity has picked up after a dismal 2023, which should provide a boost to the bank.
Last week, JPMorgan Chase, Wells Fargo and Citigroup Each beat revenue and profit expectations, a streak that continued Goldman Sachs on Monday, helped by a rebound in activity on Wall Street.
This story is developing. Please check back for updates.
