People will leave Morgan Stanley Global HQ in Manhattan on March 20, 2025 in New York City.
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Morgan Stanley reported first-quarter results on Friday, surpassing estimates as stock trading revenues surged 45% amid rising global volatility.
Here’s what the company reported:
Revenue: $2.60 per share vs. $2.20 per share Estimated LSEG: $17.74 billion vs. $165.8 billion
The company rose 26% to $4.32 billion, or $2.60 per share, while revenue rose 17% to a record $17.74 billion.
Stock trading stood out this quarter as revenues rose to $4.5 billion to 45%, an increase of about $840 million over StreetAccount estimates.
Morgan Stanley said that the equity results are strong across franchises, but in operations that cater to Asia and hedge funds, “it will be driven by strong client activity in a more volatile trading environment.”
Elsewhere, the company mostly met expectations.
Bond trading increased 5% to $2.6 billion, essentially matching StreetAccount estimates. Investment banks rose 8% to $1.56 billion, below the $1.61 billion estimate.
Asset management revenues rose 6% to $7.333 billion, matching estimates.
Morgan Stanley’s shares have recently been whipped up as President Donald Trump’s trade policy is growing concern that the US is heading for a recession.
The bank’s large wealth management business was supported by the high stock market value in the first quarter, inflated the management fees it collects.
Analysts will want to ask about the prospects for a list of mergers and IPOs that could be reduced amidst tensions.
