Morgan Stanley (MS) Earnings 3Q 2023

Morgan Stanley CEO James Gorman attends the Reuters Next Newsmaker event in New York on December 1, 2022.

Brendan McDermidt | Reuters

Morgan Stanley It released third-quarter results on Wednesday, which topped profit estimates on better-than-expected trading revenue.

Here’s what the company announced:

  • Earnings per share: $1.38, vs. $1.28 estimate for LSEG, formerly Refinitiv.
  • Revenue: $13.27 billion, versus $13.23 billion expected

Profit fell 9% to $2.41 billion, or $1.35 a share, from a year earlier, the New York-based bank said in a statement. Report. Revenue rose 2% to $13.27 billion, basically matching expectations.

Morgan Stanley’s trading activities helped offset revenue losses elsewhere in the firm. The bank’s bond traders generated $1.95 billion in revenue, roughly $200 million more than Street Account estimates, while equity traders generated $2.51 billion in revenue, $100 million more than expected.

But the bank’s all-important wealth management division posted revenue of $6.4 billion, $200 million above estimates, as compensation costs in the division rose.

The investment bank suffered another miss this quarter, posting revenue of $938 million, below estimates of $1.11 billion, as the company cited weakness in mergers and IPO listings. The bank’s investment management division met expectations with revenue of $1.34 billion.

Shares of Morgan Stanley fell 3.2% in premarket trading.

Led by CEO James Gorman since 2010, Morgan Stanley has recently managed to avoid the turmoil that has plagued some rivals. when Goldman Sachs After a foray into retail banking and the like was forced to highlight Citigroup Struggling to lift its share price, Morgan Stanley’s main question is about an orderly CEO succession.

See also  Stocks extend gains into Thanksgiving holiday, Nvidia falls after earnings

In May, Corman announced plans to step down within a year, ending a successful tenure marked by massive acquisitions in wealth and asset management. Morgan Stanley’s team has narrowed its search to three internal executives to replace him, he said.

Analysts are eager to hear any updates Corman has on the search process.

Last week, JPMorgan Chase, Wells Fargo and Citigroup topped expectations for third-quarter profits, helped by lower borrowing costs. Goldman Sachs and Bank of America also beat estimates on stronger-than-expected bond trading results.

This story is developing. Check back for updates.

Leave a Reply

Your email address will not be published. Required fields are marked *