Ted Pick, CEO of Morgan Stanley, speaks on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland, January 23, 2025.
Gerry Miller | CNBC
Morgan Stanley The group reported third-quarter results on Wednesday that beat expectations by the biggest margin in almost five years, driven by booming results in equities trading, investment banking and wealth management.
Here’s what the company reported:
- Earnings per share: $2.80 versus $2.10 expected, according to LSEG
- Income: $18.22 billion versus $16.7 billion, according to LSEG
The bank said its profit jumped 45% from a year earlier to $4.61 billion, or $2.80 per share. Revenue rose 18% to a record $18.22 billion.
Shares of Morgan Stanley jumped nearly 5% in premarket trading. They were up about 24% this year as of Tuesday’s close.
Wall Street trading desks saw high levels of activity during the quarter, while investment banks continue to experience a resurgence in mergers and IPOs. Stocks hitting or near record highs also boosted Morgan Stanley’s giant wealth management division.
Together, Wall Street-focused banks like Morgan Stanley and its peers Goldman Sachs are in an ideal environment.
Morgan Stanley said equity trading revenue jumped 35% to $4.12 billion, $720 million more than expected by analysts surveyed by StreetAccount. The company cited increased activity across all industries and regions and record results in its prime brokerage business that caters to hedge funds.
Fixed-income trading rose 8% to $2.17 billion, essentially matching StreetAccount’s estimate.
The investment bank’s revenue in the quarter jumped 44% from a year earlier to $2.11 billion, about $430 million above StreetAccount’s estimate. The bank cited more completed mergers, more IPOs and more bond fundraising as driving factors for the quarter.
Wealth management revenue rose 13% to $8.23 billion, about $500 million more than expected, as higher asset levels and transaction fees supported results.
Tuesday, JPMorgan Chase, Goldman, Citi Group And Wells Fargo each reported earnings that beat analysts’ earnings and revenue expectations.
This story is developing. Please check again for updates.