James Gorman, chairman and chief government officer of Morgan Stanley, speaks throughout a Bloomberg Tv interview in Beijing, China, on Thursday, C
James Gorman, chairman and chief government officer of Morgan Stanley, speaks throughout a Bloomberg Tv interview in Beijing, China, on Thursday, Could 30, 2019.
Giulia Marchi | Bloomberg | Getty Photos
Morgan Stanley mentioned Friday that first-quarter revenue and income beat expectations on stronger-than-expected buying and selling and funding banking outcomes.
The financial institution posted revenue of $4.1 billion, or $2.19 a share, greater than double the $1.7 billion earnings of the year-earlier interval. The agency mentioned adjusted per share earnings was $2.22 excluding merger associated bills; analysts had anticipated $1.70 a share.
Here is what Wall Road anticipated:
Earnings: $1.70 a share, 68% greater than a yr earlier, in accordance with Refinitiv
Income: $14.1 billion, 49% greater than a yr earlier
Wealth administration: $5.97 billion, in accordance with FactSet
Buying and selling: Equities $2.71 billion, Fastened Revenue $2.11 billion
Funding Banking: $2.13 billion
Expectations for Morgan Stanley are working excessive after rivals posted robust buying and selling and funding banking outcomes.
The increase in SPAC-issuance has led to a bonanza in charges for fairness capital markets desks, and buying and selling desks profited from robust exercise throughout fastened earnings and inventory markets. Moreover, buoyant inventory markets ought to assist Morgan Stanley’s largest single division, wealth administration, as charges are sometimes a share of purchasers’ property underneath administration.
CEO James Gorman introduced $20 billion in offers final yr, marking probably the most aggressive takeovers for the reason that monetary disaster. He spent $13 billion to accumulate E-Commerce to additional his attain with the mass prosperous, and $7 billion to purchase Eaton Vance to bulk up his funding administration enterprise. The Eaton Vance acquisition closed through the first quarter.
Morgan Stanley is the final of the six largest U.S. banks to report first-quarter earnings.
JPMorgan Chase, Financial institution of America, Wells Fargo and Citigroup all beat analysts’ expectations with assist from releasing cash put aside earlier for mortgage losses. Key rival Goldman Sachs beat estimates on robust advisory and buying and selling outcomes.
This story is creating. Please verify again for updates.
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