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Ted Peek, CEO of Morgan Stanley, speaking on CNBC’s Squawk Box at the annual meeting of the World Economic Forum in Davos, Switzerland on January 18, 2024.
Adam Galitsky | CNBC
Morgan Stanley beat fourth-quarter earnings and revenue estimates on Thursday as the firm’s shares and fixed-income traders beat expectations.
Here’s what the company said:
- Earnings: $2.22 per share vs. LSEG’s estimate of $1.70
- Revenue: $16.22 billion vs. estimates of $15.03 billion
The bank said quarterly profit more than doubled to $3.71 billion, or $2.22 per share, for the year earlierwhen he had a couple of regulatory fees.
Revenue rose 26% to $16.22 billion, driven by improved results across all of the bank’s core businesses.
The quarter’s highlight was the company’s trading business, which led to a 51% jump in revenue to $3.3 billion, or nearly $650 million more than StreetAccount estimates. Morgan Stanley noted increased client activity and strength in its prime brokerage business serving hedge funds.
The firm’s fixed-income operations grew revenue 35% to $1.93 billion, about $250 million more than StreetAccount’s estimate, thanks to increased activity in credit and commodity markets.
Investment banking revenue rose 25% to $1.64 billion, broadly in line with StreetAccount’s estimate, driven by growth in advisory and equity capital markets results.
Wealth management revenue rose 13% to $7.48 billion on higher assets and higher fees, beating estimates by $120 million.
While banking stocks were buoyed by expectations of increased trading activity, the trading side actually helped Morgan Stanley and rivals Goldman Sachs more in quarter. Traders of both firms took advantage of increased activity before and after the US elections in November.
on wednesday JPMorgan ChaseGoldman and Citigroup each beat expectations, so trading or investment banking income exceeded expectations.
This story is evolving. Check for updates.
