Morgan Stanley profits surge as dealmaking pushes revenue higher

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Morgan Stanley mentioned strong dealmaking and wealth administration revenues pushed quarterly profits 36 % higher from a year earlier, beating analysts’ expectations.

The Wall Street behemoth on Thursday reported a revenue of $3.71 billion, or $1.98 a share, on revenue of $14.75 billion. Analysts had predicted the financial institution would report $1.69 a share on revenue of $13.93 billion, based on FactSet.

As the economic system comes roaring again, dealmaking, capital elevating and IPOs have pushed all main companies revenue higher, together with rivals JPMorgan and Goldman Sachs.

Morgan Stanley’s funding banking revenue was up 67 % from final year as file advisory charges surged to $1.27 billion — roughly triple what it was final year.

But now Morgan Stanley can also be beginning to reap the advantages of acquisitions together with funding administration company Eaton Vance and buying and selling platform E*TRADE.

“Year-to-date, our successful integrations of E*TRADE and Eaton Vance have supported growth of $400 billion in net new client assets across Wealth and Investment Management, bringing our total combined client assets to $6.2 trillion,” Chief Executive James Gorman said in a statement.

The financial institution mentioned its E*TRADE play helped increase wealth administration revenue 28 % higher. Likewise, Morgan Stanley mentioned its Eaton Vance acquisition helped buoy its funding administration revenue 38 %.

Morgan Stanley chief James Gorman mentioned, “The Firm delivered another very strong quarter, with robust revenues and improved efficiency.”
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Morgan Stanley stock opened the day 0.9 % higher with shares buying and selling at $99.45. Shares are up greater than 30 % this year.

Morgan Stanley’s report comes the day after JPMorgan introduced surprisingly sturdy earnings.