Ted Pick, CEO Morgan Stanley, talking on CNBC’s Squawk Box on the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 18th, 2024.
Adam Galici | CNBC
Morgan Stanley on Thursday topped estimates for fourth quarter earnings and income because the agency’s equities and stuck earnings merchants exceeded expectations.
Here’s what the corporate reported:
- Earnings: $2.22 a share vs. $1.70 LSEG estimate
- Revenue: $16.22 billion, vs. $15.03 billion estimate
The financial institution stated that quarterly revenue greater than doubled to $3.71 billion, or $2.22 a share, from a yr earlier, when it had a pair of regulatory fees.
Revenue rose 26% to $16.22 billion as leads to all the financial institution’s main companies improved.
But it was the agency’s equities buying and selling enterprise that shone the brightest within the quarter, producing a 51% leap in income to $3.3 billion, or practically $650 million greater than the StreetAccount estimate. Morgan Stanley cited elevated consumer exercise within the quarter and power in its prime brokerage enterprise that caters to hedge funds.
The financial institution’s large wealth administration enterprise shall be helped by excessive inventory market values within the fourth quarter, which inflates the administration charges it collects.
Investment banking exercise continued to rebound final quarter, leaping 29% within the quarter, per Dealogic figures, fueled by rising advisory and fairness capital markets exercise. And buying and selling exercise was supported by an eventful election season.
On Wednesday, JPMorgan Chase, Goldman Sachs and Citigroup every topped expectations, helped by better-than-expected income from buying and selling or funding banking.
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