Morgan Stanley (MS) earnings Q3 2021

Morgan Stanley on Thursday topped expectations for 3rd-quarter gain and income as the firm posted history benefits in financial investment banking and asset management.

Here are the numbers:

  • Earnings: $1.98 a share vs the $1.68 a share estimate of analysts surveyed Refinitiv
  • Income: $14.75 billion vs. the $14 billion estimate

Income and internet earnings jumped more than 25% from a calendar year back, aided by CEO James Gorman’s acquisitions of E-Trade and Eaton Vance, which bulked up the firms’ wealth and asset administration divisions. Shares of the financial institution rose 1.5%.

“The Firm sent yet another extremely powerful quarter, with robust revenues and enhanced efficiency,” Gorman mentioned in the release. “We had standout general performance of our built-in investment lender and file net new assets of $135 billion in wealth management.”

When rival financial institutions have described a slowdown in third-quarter preset money investing earnings, Morgan Stanley’s energy has usually been in its equities franchise, the most important in the globe.

Equities trading income jumped 24% from a yr previously to $2.88 billion, topping the StreetAccount estimate by much more than $500 million. Set profits income dropped 16% to $1.64 billion, edging out the $1.53 billion estimate.

A different region that has flourished is investment decision banking, propelled by sturdy mergers and IPO action, and Morgan Stanley is a leading participant there as very well. Rival advisor JPMorgan Chase posted document investment decision banking costs in the third quarter.

Morgan Stanley’s financial commitment banking franchise delivered in the quarter, publishing a 67% raise in earnings to a file $2.85 billion, exceeding the StreetAccount estimate by a lot more than $600 million, assisted by robust mergers advisory expenses.

The firm’s large prosperity management division noticed revenue leap 28% to $5.94 billion. The improve was driven by record asset administration revenues of $3.63 billion, thanks to mounting equities values and growing costs from economical advisors. To be certain, revenue from Morgan Stanley’s prosperity management division was down below a StreetAccount forecast of $6.18 billion.

Shares of the bank have climbed 44% this year by Wednesday’s close, outpacing the 36% increase of the KBW Financial institution Index.

JPMorgan topped expectations Wednesday, aided by a $1.5 billion increase from much better-than-anticipated bank loan losses. Financial institution of The usa posted outcomes Thursday that exceeded analysts’ expectations, as it benefited from much better-than-predicted personal loan losses and report advisory and asset management costs.

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