On Tuesday, Morgan Stanley reported a 7% rise in equities trading revenue and a 7.3% rise in overall revenue for the third quarter. The results surpass expectations across the board.
Morgan Stanley’s success is in part due to a long-term focus on risk-reduction and investments in better tools and financial technology.
Here’s how the reported profits compare to the estimates:
- Revenue: $9.9 billion, up 7% and beating analyst expectations of $9.6 billion
- Net income: $2.1 billion, up 19% versus $1.8 billion expected
- Earnings per share: $1.17, beating expectations for $1.01
- Return on equity: 11.5% versus 10.5% expected
- Investment-banking revenue of $1.5 billion, rose 15% over the year-ago period on strong equity and fixed-income underwriting revenue. M&A advisory was down because of lower levels of completed deals.
- In sales and trading, revenue from bond trading was up 1%, while equity trading was up 7%.
- Wealth management saw revenue of $4.4 billion, up 4% from the year-ago period.
(via Business Insider)