On October 16th, Morgan Stanley reported a 32% jump in profit to $3.2 billion in the third quarter. The famous investment company also exceeded revenue expectations.
Investment banking, trading and wealth management services were the largest catalysts of Q3 growth.
Fellow big banks JP Morgan, Goldman Sachs, Wells Fargo and more are optimistic that the Fed’s interest rate-cutting cycle started last month will lead to more future deals.
Here is an overview courtesy of Dan Sheenan, Markets Strategist and Financial Advisor, on LinkedIn.
EPS: $1.88 vs $1.58 expected
Revenue: $15.38B vs $14.41B expected (up 16% YoY)
Net Income: $3.2B (up 32% YoY)
Performance Drivers:
Robust Wealth Management: Benefited from high stock market values
Investment Banking Rebound: Potential for continued growth with easing rates
Strong Trading Results: In line with industry trends
Sector Comparison: Morgan Stanley’s strong performance aligns with other major banks
After Tim Pick was named the successor to longtime CEO James Gorman, Morgan Stanley’s stock has outperformed major stock indexes shooting up 57% for that period.
Gorman plans to step down from the executive chairman role at the end of this year.
“Our management continues to be focused on driving durable growth and realizing long-term returns for our shareholders,” Pick stated in the press release.
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