Morgan Stanley’s equity trading revenue rises 41 per cent
Morgan Stanley’s third-quarter equity trading revenue reached 5.799 billion dollars, helping lift total net revenue to 20.338 billion dollars. Wealth management also grew and attracted substantial new assets. Fixed-income and investment-management revenue declined, while net profit increased to 4.909 billion dollars. The results cover the three months ended September 30.
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Equity trading lifts securities revenue
Morgan Stanley, the investment bank and wealth manager, reported a 41 per cent annual rise in third-quarter equity trading revenue.[1], [2]
Equity trading revenue reached 5.799 billion dollars, with the bank highlighting client activity in Asia. Institutional Securities revenue increased from 8.523 billion dollars to 10.029 billion dollars. Fixed-income revenue fell 7 per cent to 2.011 billion dollars amid weaker activity in credit, securitized products and structured commodities.[1]
Wealth management adds new assets
Wealth Management revenue grew 10 per cent to 9.065 billion dollars. Net new assets totaled 232.4 billion dollars, with more than half associated with initial public offerings. Fee-based asset flows included a corporate retirement mandate. The investment management business’s revenue fell 12 per cent to 1.459 billion dollars, partly reflecting a reversal in carried interest.[1]
Profit rises as credit provisions return
For the three months ended September 30, net revenue rose from 18.224 billion dollars to 20.338 billion dollars. Net income increased to 4.909 billion dollars, and diluted earnings per share rose from 2.80 dollars to 3.03 dollars. Credit-loss provisions were 148 million dollars, compared with zero a year earlier. Morgan Stanley repurchased 1.5 billion dollars of common stock during the quarter.[1]
