Ted Pick, co-president of Morgan Stanley, said during a Bloomberg Television interview in New York, USA, Thursday, October 26, 2023.
Jeenah Wulan | Bloomberg Getty Images
Morgan Stanley said second-quarter profit and revenue topped analysts’ estimates on stronger-than-expected trading and investment banking results.
Here is the company’s report:
- Earnings: $1.82 a share vs $1.65 a share LSEG estimates
- Revenue: $15.02 billion, vs. $14.3 billion estimate
The bank said profit rose 41% from the prior period to $3.08 billion, or $1.82 per share, helped by a rebound in Wall Street activity. Revenue rose 12% to $15.02 billion.
Morgan Stanley benefited from its Wall Street-centric business model in the quarter.
Equity trading revenue rose 18% to $3.02 billion, beating StreetAccount estimates of about $330 million. Fixed income trading rose 16% to $1.99 billion, beating estimates of $130 million.
Investment banking revenue rose 51% to $1.62 billion, beating estimates of $220 million, driven by a rise in fixed income underwriting revenue. Morgan Stanley said it was mainly driven by non-investment grade companies increasing their debt.
“The company delivered another strong quarter in an improving capital market environment,” CEO Ted Pick said in the release. “We continue to execute on our strategy and remain well-positioned to deliver long-term growth and value for our shareholders.”
last week, JPMorgan Chase, Wells Fargo and Citigroup each above expectations for revenue and profit, the streak continues by Goldman Sachs on Friday, helped by a rebound in Wall Street activity.
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