Morgan Stanley CEO Ted Pick speaks on CNBC’s Squawk Box during the World Economic Forum Annual Meeting in Davos, Switzerland on January 18, 2024.
Adam Garisi | CNBC
Morgan Stanley on Thursday beat expectations for fourth-quarter profit and revenue, beating the expectations of its stock and bond traders.
Here’s what the company reported:
Earnings: $2.22 per share (LSEG estimate $1.70) Revenue: $16.22 billion ($15.03 billion estimate)
The bank said its quarterly profit more than doubled to $3.71 billion ($2.22 per share) from the same period last year, which included two regulatory charges.
Revenue increased 26% to $16.22 billion as performance across all of the bank’s major businesses improved.
But it was the company’s equity trading business that was the brightest of the quarter, with revenue up 51% to $3.3 billion, beating Street estimates by nearly $650 million. Morgan Stanley cited increased client activity in the quarter and strength in its prime brokerage business for hedge funds.
The bank’s large wealth management business was helped by a rally in the stock market in the fourth quarter, which will increase the management fees it collects.
Investment banking continued to recover last quarter, increasing 29% in the quarter, driven by increased advisory and equity capital markets activity, according to Dealogic statistics. And trade activity was supported by an eventful election season.
On Wednesday, JPMorgan Chase & Co., Goldman Sachs & Co. and Citigroup Inc. each beat expectations, helped by better-than-expected earnings in trading and investment banking.
This story is developing. Please check back for the latest information.
