Economy

Morgan Stanley posts earnings beat driven by strong trading revenue

Morgan Stanley posts earnings beat driven by strong trading revenue”

But a surge in equity underwriting revenues helped spur growth in the segment, with Morgan Stanley benefiting from IPOs, follow-on offerings, and blocks as clients continued to access capital markets.

Morgan Stanley's investment bankers posted revenue of $1.71 billion, beating the $1.6 billion analyst estimate.

The trading division topped analysts' estimates, driven by a 35% jump in fixed-income revenue that was second-best among the big banks.

Morgan Stanley followed suit, reporting a 20% rise in trading revenue and a 118% rise in stock underwriting. Net income rose to $2.72 billion, or $1.66 a share, from $2.17 billion, or $1.27 a share, in the year-ago period, beating the FactSet earnings consensus of $1.28 a share.

Net income applicable to common shareholders rose 26% to $2.60 billion in the quarter ended September 30.

More news: Obama to Campaign for Biden in Battleground Pennsylvania Next Week

Wealth Management delivered pre-tax income of $1.1 billion with a reported pre-tax margin of 24.0% (or 25.3% excluding the impact of a regulatory charge in the third quarter).

"Big investment banks are the easiest financial stocks to own because they have comparatively small loan portfolios (which are the biggest risk) but have upside earnings leverage to the now active capital markets". In the comparable quarter of previous year, it had reported a lower £1.68 billion of net income or 98 pence per share. Experts had forecast a much lower £2.59 billion of revenue from sales and trading in the recent quarter.

Moody's Investors Service upgraded the bank's credit rating earlier this month, which would lower its borrowing costs and make its traders more competitive.

"For a decade now, we've been rebuilding Morgan Stanley from the depths of the crisis to a position to withstand whatever comes our way", Mr. Gorman said Thursday. "There's an emerging view that the election will not be as clear as has historically been the case". The two divisions are becoming even more important for revenue, as assets swell with the firm's new purchases.

The biggest banks were buoyed mostly by their Wall Street arms, with trading revenue rising between 4% at Bank of America Corp. and 30% at JPMorgan Chase & Co. The Eaton Vance acquisition is expected to wrap up in the middle of next year. Revenue from wealth management rose 7% in the latest quarter.



Like this

loading...
loading...

Latest


18 October 2020
Phase 2 trial of Sputnik V may resume in India soon
The Indian Express told The Indian that once a vaccine has been present one should strive for herd immunity. According to The Lancet , there are now 42 vaccines for COVID-19 in clinical trials.

18 October 2020
Twitter Still Blocking NYPost Account, Unblocks One Hunter Biden Story
Giuliani has publicly denied that he obtained the material from a foreign source. One of the biggest involves the source of the emails: Rudy Giuliani .

18 October 2020
Trump fires back at Sasse after town hall criticism
The ways I criticize President Obama for that kind of spending; I've criticized President Trump for as well. Trump "mocks evangelicals behind closed doors", he added. "He's flirted with white supremacists".

18 October 2020
Australia's Victoria registers only one Covid-19 case
According to Air New Zealand, 90 per cent of the 300 tickets booked on the first flight into Australia are one-way tickets. He got into Melbourne easily and wasn't told anything about having to quarantine or be detained.

17 October 2020
Jon Moxley Reacts to Comparison With Roman Reigns
Roman Reigns failed at football before "falling into the WWE safety net", according to Strowman. I want him to take notes, I want him to see what it takes to operate at such a high level.

17 October 2020
Iran registers 4,552 new COVID-19 cases, 522,387 in total
The country recorded historic highs in daily deaths three times this week, including Wednesday, The Associated Press reported. Lately reopened universities and faculties, in addition to libraries, mosques, cinemas, museums and wonder salons, shut down.

17 October 2020
'Good old days of segregation' comment was sarcasm: Graham
Released Thursday, the poll of 605 likely voters taken from October 9-15 showed Graham leading with a 46% to Harrison's 40%. Graham announced he brought in $28 million, which is the largest amount raised by a senator.

17 October 2020
Barca coach Koeman: I'll play Griezmann where I want
But Leo has been playing a very tight schedule for many years. "He is a player who if he does not play is more exhausted . Barcelona will aim to return to winning ways when they play Getafe in La Liga 2020-21 on October 18 (Sunday).

17 October 2020
Las Vegas 'Misfits' No More, Golden Knights Now Expected To Win
Pietrangelo will count $8.8 million against the salary cap through 2027 and the deal includes a full no-movement clause. The 30-year-old was considered the top UFA on the open market.

17 October 2020
Your blood type may determine how sick you get from COVID
This means that it's not clear how the relationship between blood type and Covid-19 works and any link may be coincidental. Researchers in Denmark find fewer coronavirus patients have O blood compared to those with A, B, and AB blood.