Morgan Stanley on Wednesday, October 16, published information about its earnings for the third quarter of the current year.
The performance of the mentioned financial institution, headquartered in New York City, for July-September of the present year, exceeded analysts’ preliminary expectations for the dynamic of the corresponding indicators. The appropriate results are because each of the three units generated revenue that turned out to be higher than forecasts.
The profit of the financial institution for the third quarter of the current year was fixed at $3.2 billion or $1.88 per share. This indicator showed an increase of 32% compared to the result for the same period in 2023. It is worth noting that the preliminary LSEG estimate provided that profit would be fixed at $1.58 per share.
The revenue of the financial institution for the third quarter of the current year amounted to $15.38 billion. This indicator increased by 16% compared to the result for the same period in 2023. LSEG’s preliminary estimate provided that Morgan Stanley’s revenue for July-September of the current year would be fixed at $14.41 billion.
There were several favorable factors for the positive performance of a financial institution in the third quarter of 2024. In this context, it should be mentioned that the impulse of the impact was the revival in the markets. Also, one of the favorable factors was a rebound in investment banking after an unsuccessful 2023. Moreover, another positive impulse was strong trading activity.
Separately, it is worth paying attention to the fact that last month the Federal Reserve began cutting interest rates as part of the implementation of the decision to ease the monetary policy strategy. It is expected that the relevant decision of the central bank of the United States will be a factor that will encourage the intensifying of financing and merger activity that Wall Street companies capitalize on. The relevant prospects relate, among other things, to Morgan Stanley.
Chief executive officer of the financial institution Ted Pick said that the bank reported a strong third quarter in a constructive environment across its global footprint.
After the data on Morgan Stanley earnings for July-September of the current year were published, the value of the lender’s shares increased by 3.6% in premarket trading.
The bank’s unit, which specializes in wealth management, generated revenue of $7.27 billion in the third quarter of 2024. This indicator showed an increase of 14% compared to the result for the same period last year. The revenue of the mentioned unit of the financial institution exceeded StreetAccount’s preliminary estimate by about $400 million.
The bank’s equity trading activities generated revenue of $3.05 billion in the third quarter of the current year. This indicator increased by 21% compared to the result for the same period in 2023. StreetAccount’s preliminary estimate stipulated that the mentioned revenue would be fixed at $2.77 billion.
The fixed income revenue of the financial institution for the third quarter of the current year amounted to $2 billion. This indicator increased by 3% compared to the result for the same period in 2023. StreetAccount’s preliminary estimate provided that the corresponding figure would be $1.85 billion.
Investment banking in the third quarter of the current year generated revenue for the financial institution of $1.46 billion. This indicator increased by 56% year-on-year. StreetAccount’s forecast provided that the corresponding figure would be fixed at $1.36 billion.
The financial institution’s revenue from investment management for the third quarter of the current year also amounted to $1.46 billion, showing an increase of 9% compared to the result for the same period in 2023. StreetAccount’s forecast provided that this figure would be fixed at $1.42 billion.
Currently, Morgan Stanley oversees $7.6 trillion in assets across its investment management and wealth unit.
It is worth noting that at the beginning of the current year, the value of shares of a financial institution was on a downward trajectory. The corresponding dynamic was because the bank’s top management cautiously spoke about the prospects of achieving margin targets in the near term. Currently, the financial institution’s performance indicators are showing steady growth.
