Morgan Stanley beats expectations as profit rises 19% during 3rd quarter

  • Morgan Stanley reported earnings on Tuesday morning, with its revenue and profit beating expectations.

Morgan Stanley announced third-quarter earnings results Tuesday morning. Here’s how the bank fared.

  • Revenue: $9.9 billion, up 7% and beating analyst expectations of $9.6 billion
  • Net income: $2.1 billion, up 19% versus $1.8 billion expected
  • Earnings per share: $1.17, beating expectations for $1.01
  • Return on equity: 11.5% versus 10.5% expected

Other key numbers:

  • Investment-banking revenue of $1.5 billion, rose 15% over the year-ago period on strong equity and fixed-income underwriting revenue. M&A advisory was down because of lower levels of completed deals.
  • In sales and trading, revenue from bond trading was up 1%, while equity trading was up 7%.
  • Wealth management saw revenue of $4.4 billion, up 4% from the year-ago period.

“In the first half of the year, we produced strong results across the franchise,” Morgan Stanley CEO James Gorman said. “Despite the seasonal summer slowdown in the third quarter, we reported solid revenue and earnings growth demonstrating the stability of the franchise. Year to date, we have produced an ROE of 13% and ROTCE of 15%. We remain well positioned and optimistic for the remainder of the year.”

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