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Ted Pick, CEO of Morgan Stanley, speaking on CNBC’s Squawk Box at the World Economic Forum annual meeting in Davos, Switzerland, on January 18, 2024.
Adam Galici | CNBC
Morgan Stanley Thursday beat estimates for fourth-quarter earnings and revenue, as the company’s equity and fixed-income traders beat expectations.
This is what the company reported:
- Earnings: $2.22 per share vs. LSEG estimate of $1.70
- Revenue: $16.22 billion, versus estimate of $15.03 billion
The bank said quarterly profit more than doubled to $3.71 billion, or $2.22 per share, compared with a year ago. earlierwhen I had a couple of regulatory positions.
Revenue rose 26% to $16.22 billion as results improved across the bank’s core businesses.
But it was the company’s stock trading business that shined brightest in the quarter, producing a 51% increase in revenue to $3.3 billion, or nearly $650 million more than StreetAccount’s estimate. Morgan Stanley cited higher client activity in the quarter and the strength of its prime brokerage business serving hedge funds.
The bank’s huge wealth management business will be helped by high stock values in the fourth quarter, which inflates the management fees it collects.
Investment banking activity continued to recover last quarter, increasing 29% in the quarter, according to Dealogic figures, driven by increased activity in the equity and advisory capital markets. And business activity was supported by an eventful election season.
On Wednesday, JPMorgan Chase, Goldman Sachs and citi group each exceeded expectations, helped by better-than-expected revenue from commercial or investment banking.
This story is developing. Please check back for updates.
