Morgan Stanley (MS) Q3 2024 earnings

Morgan Stanley on Wednesday beat analysts’ estimates for third-quarter profit as each of its three main divisions posted more revenue than expected.

Here’s what the company reported:

• Result: $1.88 per share vs. $1.58 LSEG estimate
• Revenue: $15.38 billion versus an estimate of $14.41 billion

The bank said profit rose 32% to $3.2 billion, or $1.88 per share, and revenue rose 16% to $15.38 billion.

Morgan Stanley had several tailwinds in its favor, ranging from buoyant markets that benefited its massive asset management business, a recovery in investment banking after a dismal 2023 and strong trading activity. The Federal Reserve began cutting interest rates in the quarter, which should encourage more financing and merger activity that benefits Wall Street firms.

“The company reported a strong third quarter in a constructive environment across our global footprint,” Morgan Stanley CEO Ted Pick said in the release.

The bank’s shares rose 3.6% in premarket trading.

The bank’s wealth management division reported a 14% year-over-year increase in revenue to $7.27 billion, beating StreetAccount’s estimate by nearly $400 million.

Equity trading revenue rose 21% to $3.05 billion, compared with the $2.77 billion estimate, while fixed income revenue rose 3% to $2 billion, also up were above the estimate of $1.85 billion.

Investment banking revenue rose 56% year-over-year to $1.46 billion, topping estimates of $1.36 billion.

Investment management, the company’s smallest division, also beat expectations, posting a 9% increase in revenue to $1.46 billion, slightly above the $1.42 billion estimate.

Morgan Stanley’s Wall Street rivals also posted better-than-expected Wall Street sales. JPMorgan Chase, Goldman Sachs And Citigroup beat estimates on strong commercial and investment banking revenues.

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