Morgan Stanley reported results on Tuesday that beat analysts’ profit and revenue estimates as asset management, trading and investment banking beat expectations.
Here’s what the corporate reported:
- Earnings: $2.02 per share versus expected $1.66, in response to LSEG
- Revenue: $15.14 billion vs. expected $14.41 billion
The bank said first-quarter profit rose 14% from a 12 months ago to $3.41 billion, or $2.02 per share, driven by rising ends in each of its three major divisions . Sales rose 4% to $15.14 billion.
The bank’s shares rose greater than 3%.
Asset management revenue rose 4.9% to $6.88 billion, topping StreetAccount’s estimate by $230 million, as rising markets helped boost fee income and offset a decline in interest income.
Stock trading revenue rose 4.1% to $2.84 billion, $160 million greater than expected, driven by derivatives volumes. Fixed income trading revenue fell 3.5% to $2.49 billion, but still beat expectations by $120 million.
Investment banking revenue rose 16% to $1.45 billion, beating the $1.40 billion estimate, as an increase in bond and equity issuances offset lower fees from acquisitions.
The company’s smallest division, investment management, was the one major division to fall wanting expectations. While revenue rose 6.8% to $1.38 billion, it was below the StreetAccount estimate of $1.43 billion.
CEO Ted Pick’s tenure got off to a rocky start, as high rates of interest incentivized the bank’s wealth management clients to shift money into higher-yielding securities. The bank’s shares have fallen nearly 7% this 12 months through Tuesday.
But like rivals including Goldman Sachs And JPMorgan ChaseMorgan Stanley benefited from strong trading and investment banking ends in the quarter.
Last week, JPMorgan, Wells Fargo and Citigroup Both beat sales and profit expectations, a streak that Goldman continued on Monday Bank of America on Tuesday.
Analysts are more likely to ask Pick about reports that several U.S. regulators are doing so investigate Morgan Stanley over possible deficiencies in client screening for its wealth management division.
This story is developing. Please check back for updates.
