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Morgan Stanley profits surge as dealmaking pushes revenue higher

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Morgan Stanley mentioned sturdy dealmaking and wealth administration revenues pushed quarterly profits 36 % higher from a 12 months earlier, beating analysts’ expectations.

The Wall Street behemoth on Thursday reported a revenue of $3.71 billion, or $1.98 a share, on revenue of $14.75 billion. Analysts had predicted the financial institution would report $1.69 a share on revenue of $13.93 billion, based on FactSet.

As the economic system comes roaring again, dealmaking, capital elevating and IPOs have pushed all main corporations revenue higher, together with rivals JPMorgan and Goldman Sachs.

Morgan Stanley’s funding banking revenue was up 67 % from final 12 months as file advisory charges surged to $1.27 billion — roughly triple what it was final 12 months.

But now Morgan Stanley can be beginning to reap the advantages of acquisitions together with funding administration firm Eaton Vance and buying and selling platform E*TRADE.

“Year-to-date, our successful integrations of E*TRADE and Eaton Vance have supported growth of $400 billion in net new client assets across Wealth and Investment Management, bringing our total combined client assets to $6.2 trillion,” Chief Executive James Gorman said in a statement.

The financial institution mentioned its E*TRADE play helped enhance wealth administration revenue 28 % higher. Likewise, Morgan Stanley mentioned its Eaton Vance acquisition helped buoy its funding administration revenue 38 %.

morgan stanley signage
Morgan Stanley chief James Gorman mentioned, “The Firm delivered another very strong quarter, with robust revenues and improved efficiency.”
REUTERS

Morgan Stanley inventory opened the day 0.9 % higher with shares buying and selling at $99.45. Shares are up greater than 30 % this 12 months.

Morgan Stanley’s report comes the day after JPMorgan introduced surprisingly robust earnings.

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