Thu, 16 Jan 2025

Morgan Stanley tops estimates on strong equities and fixed income trading revenue

While bank stocks have been supported by enthusiasm for rising deal activity, it was actually the trading side that helped Morgan Stanley more in the quarter.
Its equities trading business reported a 51% jump in revenue to $3.3 billion, exceeding estimates by nearly $650 million. The firm's fixed income operations saw revenue increase 35% to $1.93 billion, about $250 million above estimates, due to rising activity in credit and commodities markets. Investment banking revenue rose 25% to $1.64 billion, matching estimates, driven by higher advisory and equity capital markets results. Wealth management saw a 13% increase in revenue to $7.48 billion on higher asset levels and fees. The company's shares rose nearly 1.6% in morning trading Thursday. This comes after JPMorgan Chase, Goldman Sachs, and Citigroup also topped expectations due to strong performance from their trading or investment banking businesses.
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