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Morgan Stanley on Tuesday posted outcomes that topped analysts’ estimates for revenue and income as wealth administration, buying and selling and funding banking exceeded expectations.
Here is what the corporate reported:
- Earnings: $2.02 a share, vs. $1.66 LSEG estimate
- Income: $15.14 billion, vs. anticipated $14.41 billion
The financial institution stated first quarter revenue rose 14% from a yr earlier to $3.41 billion, or $2.02 a share, helped by rising outcomes at every of its three predominant divisions. Income rose 4% to $15.14 billion.
Shares of the financial institution jumped 3.6% in premarket buying and selling.
Wealth administration income rose 4.9% to $6.88 billion, topping the StreetAccount estimate by $230 million, as rising markets helped increase price income and offset a decline in curiosity revenue.
Equities buying and selling income rose 4.1% to $2.84 billion, $160 million greater than anticipated, fueled by derivatives volumes. Fastened revenue buying and selling income slipped 3.5% to $2.49 billion, however that also topped expectations by $120 million.
Funding banking income jumped 16% to $1.45 billion, edging out the $1.40 billion estimate, as will increase in debt and fairness issuance offset decrease charges from acquisitions.
The agency’s smallest division, funding administration, was the one main enterprise to underperform expectations. Whereas income climbed 6.8% to $1.38 billion, it was beneath the $1.43 billion StreetAccount estimate.
CEO Ted Decide’s tenure had kicked off on a rocky be aware, as excessive rates of interest have incentivized the financial institution’s wealth administration clients to maneuver money into higher-yielding securities. The financial institution’s shares have declined practically 7% this yr earlier than Tuesday.
However like rivals together with Goldman Sachs and JPMorgan Chase, Morgan Stanley was helped by sturdy buying and selling and funding banking ends in the quarter.
Final week, JPMorgan, Wells Fargo and Citigroup every topped expectations for income and revenue, a streak continued by Goldman on Monday and Financial institution of America on Tuesday.
Analysts are prone to query Decide about stories that a number of U.S. regulators are investigating Morgan Stanley for potential shortfalls in the way it screens purchasers for its wealth administration division.
This story is growing. Please verify again for updates.
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