Morgan Stanley Q3 Earnings: Institutional Securities Sees Momentum, Total Client Assets Surpass $7.5T Across Wealth And Investment Management

Wednesday, Morgan Stanley MS reported a third-quarter adjusted EPS of $1.88, up from $1.38 a year ago, beating the consensus of $1.58, demonstrating the strength of Integrated Firm with strong results across business segments. Net earnings increased almost 33% to $3.2 billion.

The U.S. bank reported third-quarter sales of $15.38 billion, up 15.9% year over year, beating the consensus of $14.41 billion.

Ted Pick, CEO, said, “The Firm reported a strong third quarter in a constructive environment across our global footprint. Institutional Securities saw momentum in the markets and underwriting businesses on solid client engagement. Total client assets have surpassed $7.5 trillion across Wealth and Investment Management supported by buoyant equity markets and net asset inflows.”

Also Read: Morgan Stanley Takes Bold Step Into Crypto Market, Offering Bitcoin ETFs To Select Clients.

Provision for credit losses decreased to $79 million due to lower provisions in the commercial real estate sector compared to the prior year quarter, partially offset by growth in the corporate loan portfolio.

The expense efficiency ratio was 72% for both the third quarter and year-to-date, benefiting from our scale and disciplined expense management while maintaining a strong infrastructure to support ongoing growth.

Morgan Stanley delivered Return on Tangible Common Equity of 17.5% during the third quarter and 18.2% year-to-date.

Institutional Securities reported net revenues of $6.8 billion compared with $5.7 billion a year ago, reflecting strong performance in Equity and Fixed Income on higher client activity and increased momentum in Investment Banking.

Investment Banking revenues were up 56% from a year ago to $1.46 billion. Advisory revenues increased to $546 million due to the higher number of completed M&A transactions, with particular strength in EMEA.

Equity net revenues reached $3.05 billion, up 21% from a year ago, reflecting higher results across business lines driven by increased client activity, particularly in the Americas and Asia.

Wealth Management reported net revenues of $7.27 billion in the current quarter compared with $6.40 billion a year ago.

Price Action: MS stock is up 3.70% at $116.37 during the premarket session at last check Wednesday.

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