Morgan Stanley Earnings Top Estimates Fueled by Trading Revenue Gains

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Morgan Stanley Is Set to Report First-Quarter Earnings — Here's What the Street Expects

Wall Street banks are grappling with a sudden slowdown in mergers-related advisory fees and a sharp drop in IPO activity in the first quarter, a reversal of the boom that fueled last year's strong results. The change was triggered by stock market declines and Russia's invasion of Ukraine, forces that made markets less hospitable for deals and public listings.

The source of the other half of Morgan Stanley's revenue, the bank's giant wealth management and investment management divisions, didn't hold up as well, however. Its revenue from wealth management totaled $5.9 billion, flat from a year ago but missing an estimate of $6.2 billion, according to StreetAccount.

Morgan Stanley's investment banking revenue also disappointed, coming in at $1.6 billion, marking a 37% decrease from year ago and lower than a $1.8 billion estimate per StreetAccount. The slowdown was due to a significant decrease in equity underwriting revenues, the bank said.

 

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