Morgan Stanley mentioned sturdy dealmaking and wealth administration revenues pushed quarterly income 10 % greater from a yr earlier, beating analysts’ expectations.
The Wall Road behemoth reported a revenue of $3.51 billion, or $1.85 a share, on income of $14.76 billion. Analysts had predicted the financial institution would report $1.65 a share on income of $13.98 billion, in response to knowledge from FactSet.
Morgan Stanley’s funding banking income – up 16 % from final yr — helped push its numbers greater. Because the economic system comes roaring again, dealmaking, capital elevating, and IPOs have lifted all major firms’ investment banking revenues, together with rivals JPMorgan and Goldman Sachs.
However in contrast to its friends, Morgan Stanley is beginning to see the advantages of its aggressive acquisitions. The financial institution’s buy of Eaton Vance final yr helped double its investment management revenues from $886 million a yr to $1.7 billion this quarter.
Likewise, Morgan Stanley’s 2020 wager on buying and selling platform E*TRADE buoyed its wealth administration income to $6.1 billion – up from $4.7 billion a yr in the past.
“With our reworked enterprise mannequin offering extra secure and sturdy earnings, we have now doubled our dividend and introduced a $12 billion buyback as we transfer to return our extra capital to shareholders,” Gorman mentioned in an announcement. “Our world franchise could be very nicely positioned to drive additional progress.”