Morgan Stanley fattens profit by $1 billion as investment banking revenue jumps

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Morgan Stanley on Thursday said its third-quarter net income rose to $3.7 billion or $1.98 a share, from $2.7 billion, or $1.66 a share, in the year-ago period. Revenue increased to $14.8 billion from $11.7 billion a year ago.

Morgan Stanley MS, +0.81% on Thursday said its third-quarter net income rose to $3.7 billion or $1.98 a share, from $2.7 billion, or $1.66 a share, in the year-ago period. Revenue increased to $14.8 billion from $11.7 billion a year ago. Analysts expected the investment bank to earn $1.69 a share on revenue of $13.93 billion. Chairman and CEO James P.

Gorman said Morgan Stanley"delivered another very strong quarter, with robust revenues and improved efficiency" with a return on producing a return on average tangible common shareholders' equity of 20%, highlighted by its"standout performance" in its investment bank and record net new assets of $135 billion in wealth management. The firm's investment banking revenue rose about 68% to $2.85 billion from $1.7 billion. Shares of Morgan Stanley rose 1.

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