Morgan Stanley beats estimates on better-than-expected trading and investment banking

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Morgan Stanley News

Wall Street,Banks,Earnings

Morgan Stanley is likely to benefit from its Wall Street-centric business model.

Ted Pick, co-president of Morgan Stanley, speaks during a Bloomberg Television interview in New York, US, on Thursday, Oct. 26, 2023.said second-quarter profit and revenue topped analysts' estimates on stronger-than-expected trading and investment banking results.Revenue: $15.02 billion, vs. $14.3 billion estimate

The bank said profit surged 41% from the year-earlier period to $3.08 billion, or $1.82 per share, helped by a rebound in Wall Street activity. Revenue rose 12% to $15.02 billion.Equity trading revenue jumped 18% to $3.02 billion, exceeding the StreetAccount estimate by about $330 million. Fixed income trading rose 16% to $1.99 billion, topping the estimate by $130 million.

Investment banking banking revenues surged 51% to $1.62 billion, exceeding the estimate by $220 million, on a surge in fixed income underwriting revenue. Morgan Stanley said that was primarily driven by non-investment grade companies raising debt. "The firm delivered another strong quarter in an improving capital markets environment," CEO Ted Pick said in the release. "We continue to execute on our strategy and remain well positioned to deliver growth and long-term value for our shareholders."

 

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