Morgan Stanley’s stock traders exceeded expectations in the third quarter, outperforming its major competitors as US President Donald Trump’s policies kept markets volatile. Shares of the company experienced their most significant increase in over six months, climbing more than 5 per cent in New York trading. Morgan Stanley is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. The company helps individuals, institutions and governments raise, manage and distribute the capital they need to achieve their goals.
Revenue from trading stocks surged 35 per cent to $US4.12 billion in the third quarter, according to a statement. This figure surpassed analyst estimates of a 6.6 per cent increase and exceeded Goldman Sachs Group’s $US3.74 billion in revenue from the same business. Goldman Sachs has historically dominated equity trading, but Morgan Stanley, under CEO Ted Pick, has been actively working to reclaim the top position.
The firm’s results were also boosted by higher-than-expected investment-banking fees, which rose 44 per cent. “The capital-markets flywheel is taking hold as the administration seeks to execute on its three-pronged strategy to reshape the economy,” Pick stated during an analyst call. Morgan Stanley’s wealth business also surpassed revenue estimates, attracting $US81 billion in new assets and achieving a pretax profit margin of 30 per cent.
Morgan Stanley and Bank of America were the last of the major US banks to report quarterly earnings, following JPMorgan Chase & Co, Goldman Sachs, Citigroup, and Wells Fargo & Co. Investors are closely monitoring the broader economic environment and outlook, especially after cautious remarks from some executives overshadowed strong trading and investment banking results. Bank of America also reported earnings that exceeded estimates due to increased investment-banking revenue.
