Ted Pick, CEO Morgan Stanley, speaking on CNBC’s Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 18th, 2024.
Adam Galici | CNBC
Morgan Stanley on Thursday topped estimates for fourth quarter earnings and revenue as the firm’s equities and fixed income traders exceeded expectations.
Here’s what the company reported:
- Earnings: $2.22 a share vs. $1.70 LSEG estimate
- Revenue: $16.22 billion, vs. $15.03 billion estimate
The bank said that quarterly profit more than doubled to $3.71 billion, or $2.22 a share, from a year earlier, when it had a pair of regulatory charges.
Revenue rose 26% to $16.22 billion as results in all of the bank’s major businesses improved.
But it was the firm’s equities trading business that shone the brightest in the quarter, producing a 51% jump in revenue to $3.3 billion, or nearly $650 million more than the StreetAccount estimate. Morgan Stanley cited increased client activity in the quarter and strength in its prime brokerage business that caters to hedge funds.
The bank’s massive wealth management business will be helped by high stock market values in the fourth quarter, which inflates the management fees it collects.
Investment banking activity continued to rebound last quarter, jumping 29% in the quarter, per Dealogic figures, fueled by rising advisory and equity capital markets activity. And trading activity was supported by an eventful election season.
On Wednesday, JPMorgan Chase, Goldman Sachs and Citigroup each topped expectations, helped by better-than-expected revenue from trading or investment banking.
This story is developing. Please check back for updates.
