Ted Pick, CEO of Morgan Stanley, speaks on CNBC’s Squawk Box at the World Economic Forum’s annual meeting in Davos, Switzerland, January 18, 2024.
Adam Galici | CNBC
Morgan Stanley beat fourth-quarter earnings and revenue estimates on Thursday as the company’s stock and fixed-income traders beat expectations.
Here’s what the company reported:
- Earnings: $2.22 per share vs. LSEG’s $1.70 estimate
- Revenue: $16.22 billion, versus an estimated $15.03 billion
The bank said quarterly profit more than doubled to $3.71 billion, or $2.22 per share, from a year ago. earlierwhen he had a couple of regulatory costs.
Revenue rose 26% to $16.22 billion as results across all of the bank’s core businesses improved.
But it was the company’s stock trading business that shone brightest in the quarter, producing a 51% jump in revenue to $3.3 billion, or nearly $650 million more than StreetAccount’s estimate. Morgan Stanley cited increased client activity in the quarter and strength in its prime brokerage business serving hedge funds.
The bank’s massive asset management business will be helped by strong stock market values in the fourth quarter, which inflates the management fees it collects.
Investment banking activity continued to recover last quarter, jumping 29% in the quarter, according to Dealogic, driven by rising advisory and equity capital markets activity. And trading activity was supported by an eventful election season.
On Wednesday, JPMorgan Chase, Goldman Sachs and Citigroup each beat expectations, helped by better-than-expected trading or investment banking revenues.
This story is evolving. Check again for updates.
