Morgan Stanley’s net income climbs to £2.11 billion in the fiscal third quarter

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  • Morgan Stanley’s net income climbs to £2.11 billion in the fiscal third quarter.
  • The investment bank reveals a 16.2% year over year growth in revenue in Q3.
  • Revenue from investment banking saw an 11.2% growth in Q3 to £1.32 billion.

Morgan Stanley (NYSE: MS) published its earnings report for the fiscal third quarter on Thursday that came in stronger than what the analysts had anticipated. The American multinational’s financial results came in a day after its peer, Wells Fargo, revealed a massive 56% decline in third-quarter profit.

Morgan Stanley tanked 1% in premarket trading on Thursday but gained close to 3% on market open. The £71.58 billion company that has a price to earnings ratio of 9.23 is now only 1% down year to date in the stock market. Trading stocks online is easier than you think. Here’s how you can buy shares online in 2020.

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Morgan Stanley’s Q3 financial results versus analysts’ estimates

Morgan Stanley said that its net income in the third quarter came in at £2.11 billion or £1.29 per share. In the comparable quarter of last year, it had reported a lower £1.68 billion of net income or 98 pence per share. According to FactSet, experts had forecast 99 pence of per-share earnings for Morgan Stanley in the recent quarter.

In terms of revenue, the investment bank posted £9.03 billion in Q3 that represents a 16.2% annualised growth, versus a lower £8.25 billion expected, as per FactSet. At £1.15 billion, Morgan Stanley’s net interest come registered a year over year growth of 22% in the third quarter and topped FactSet Consensus of £930 million.

Revenue from investment banking saw an 11.2% growth in Q3 to £1.32 billion that matched the analysts’ estimates. Morgan Stanley faced a £46.46 million fine earlier this week for data protection mishaps.

CEO James Gorman’s comments on Thursday

CEO James Gorman commented on the financial results on Thursday and said:

“We delivered strong quarterly earnings as markets remained active through the summer months, and our balanced business model continued to deliver consistent, high returns.”

Sales and trading revenue, on the other hand, came in at £3.21 billion, that was 20.2% higher than last year. Experts had forecast a much lower £2.59 billion of revenue from sales and trading in the recent quarter.

Within sales and trading, revenue from equity jumped 13.4% in the third quarter to £1.75 billion. Fixed-income revenue, Morgan Stanley said, registered at £1.49 billion. Analysts had anticipated £1.70 billion and £1.23 billion of revenue from equity and fixed income, respectively.

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