Ted Pick, CEO of Morgan Stanley, speaks on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland, on January 23, 2025.
Gerry Miller | CNBC
Morgan Stanley On Wednesday it posted third-quarter earnings that beat expectations by the largest margin in nearly five years thanks to booming results in stock trading, investment banking and wealth management.
This is what the company reported:
- Earnings per share: $2.80 vs. $2.10 expected, according to LSEG
- Revenue: $18.22 billion vs. $16.7 billion, according to LSEG
The bank said earnings rose 45% from a year earlier to $4.61 billion, or $2.80 per share. Revenue rose 18% to a record $18.22 billion.
Morgan Stanley shares rose nearly 5% on Wednesday. So far this year, they have increased almost 30%.
Wall Street trading desks have seen high levels of activity in the quarter, while investment banking continues to see a resurgence of mergers and initial public offerings. Stocks at or near all-time highs also bolstered Morgan Stanley's giant wealth management division.
Collectively, Wall Street-focused banks like Morgan Stanley and their peers Goldman Sachs They are in an ideal environment.
Morgan Stanley said equity trading revenue rose 35% to $4.12 billion, or $720 million more than analysts surveyed by StreetAccount expected. The company cited increased activity across all business lines and regions and record results in its prime brokerage business serving hedge funds.
Fixed income trading rose 8% to $2.17 billion, essentially matching StreetAccount's estimate.
Investment banking revenue in the quarter rose 44% from a year earlier to $2.11 billion, about $430 million higher than StreetAccount's estimate. The bank cited more completed mergers, more IPOs and more fixed income fundraising as drivers of the quarter.
Wealth management revenue rose 13% to $8.23 billion, about $500 million more than expected, as rising asset levels and transaction fees boosted results.
On Tuesday, JPMorgan Chase, Goldman, citi group and Wells Fargo each posted earnings that beat analysts' expectations for earnings and revenue.
This story is developing. Please check back for updates.
