Morgan Stanley co-chairman Ted Pick speaks during a Bloomberg Television interview in New York, U.S., Thursday, Oct. 26, 2023.
Geena Moon | Bloomberg | Good pictures
Morgan Stanley He said second-quarter profit and revenue topped analysts’ estimates of stronger-than-expected commercial and investment banking results.
Here’s what the company announced:
- Earnings: $1.82 per share vs. $1.65 per share LSEG estimate
- Revenue: $15.02 billion versus $14.3 billion estimate
The bank said profit rose 41% to $3.08 billion, or $1.82 a share, on a rebound in Wall Street activity. Revenue rose 12% to $15.02 billion.
Morgan Stanley benefited in the quarter from its Wall Street-centric business model, as a rebound in trading and investment banking helped the bank’s corporate bonds division earn more revenue than its wealth management division, reversing the usual trend.
Equity trading revenue rose 18% to $3.02 billion, beating Street estimates by about $330 million. Fixed income trading revenue rose 16% to $1.99 billion, beating estimates by $130 million.
Investment banking revenue rose 51% to $1.62 billion, driven by over $220 million in fixed income underwriting activity. Morgan Stanley said it was raising debt primarily by non-investment-grade companies.
But the bank’s wealth management has declined. Revenue rose 2% to $6.79 billion, missing estimates of $6.88 billion.
Interest income fell 17% to $1.79 billion from a year earlier, although the division’s revenue was boosted by higher levels of the stock market.
Morgan Stanley says its wealthier clients continue to shift money to higher-yielding assets, thanks to the rate environment, which has led to lower deposit levels.
Shares of the bank fell 2.7% in premarket trading.
“The company delivered another strong quarter in an improving capital market environment,” CEO Ted Pick said in the release. “We continue to execute on our strategy and are well-positioned to deliver growth and long-term value to our stakeholders.”
last week, JP Morgan Chase, Wells Fargo and Citigroup Each topped expectations for revenue and profit, a streak that continued Goldman Sachs On Monday, Wall Street saw a resurgence in action.
This story is developing. Check back for updates.
