Morgan Stanley has reported a notable increase in its first-quarter earnings and revenue, surpassing analysts' expectations and prompting a 2% rise in its shares premarket. The financial services firm announced net revenues of $15.1 billion for the quarter ended March 31, 2024, a 4.1% increase from the $14.5 billion reported in the same period last year. Adjusted earnings per share reached $2.02, exceeding the analyst estimate of $1.67 by $0.35.
The firm's Institutional Securities net revenues saw an increase to $7.0 billion compared to $6.8 billion YoY, with pre-tax income rising to $2.4 billion from $1.9 billion. Wealth Management also reported growth with net revenues of $6.9 billion, up from $6.6 billion the previous year, and a pre-tax margin of 26.3%. Investment Management's net revenues improved to $1.4 billion from $1.3 billion YoY, with pre-tax income increasing to $241 million from $166 million.
Looking forward, Morgan Stanley's performance sets a positive tone for the upcoming quarters, with the firm demonstrating the ability to generate growth across its diversified business model. The company's financial health and strategic positioning indicate a continued focus on delivering value to shareholders and clients alike.