Morgan Stanley Reports Record Earnings Amid Market Surge

Davos, Switzerland – Morgan Stanley announced on Wednesday that its third-quarter earnings exceeded expectations by the largest margin in nearly five years. The investment bank reported a profit surge of 45% from a year earlier, reaching $4.61 billion, or $2.80 per share, with revenue climbing 18% to a record $18.22 billion.

Wall Street‘s trading desks have experienced booming activity this quarter, fueled by a resurgence in investment banking, particularly in mergers and initial public offerings (IPOs). This growth benefited Morgan Stanley’s significant wealth management division, as stocks approached record highs.

The bank reported that investment banking revenue jumped 44% compared to last year, totaling $2.11 billion. This figure surpassed the StreetAccount estimate by approximately $430 million. Morgan Stanley attributed this increase to a higher number of completed mergers, more IPO activity, and increased fixed-income fundraising.

Equities trading revenue also rose 35% to $4.12 billion, exceeding analysts’ expectations by $720 million. The bank highlighted increased activity across various business lines and regions, along with record results in its prime brokerage business catering to hedge funds. Fixed-income trading revenue matched estimates, rising 8% to $2.17 billion.

This year, shares of Morgan Stanley have surged nearly 24%. On Tuesday, major competitors Goldman Sachs, JPMorgan Chase, and others also reported earnings that exceeded analysts’ expectations.

As the story develops, further updates will be provided.