Morgan Stanley rides buying and selling desk to sturdy third quarter

Andrew Cummings
October 18, 2020

The New York-based firm posted a profit in the third quarter of $2.72 billion, or $1.66 per share, up from $2.2 billion, or $1.27 per share, in the same period a year earlier.

'Big investment banks are the easiest financial stocks to own because they have comparatively small loan portfolios (which are the biggest risk) but have upside earnings leverage to the now active capital markets.

Revenue from Morgan Stanley's institutional securities division, which is the bank's largest breadwinner and houses its investment banking and trading businesses, rose 21% to $6.06bn. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Here's how you can buy shares online in 2020.


Sign-up for the DMNnewsletter, today. Analysts had expected profit of US$1.28 per share.

Net income rose 25 per cent to US$2.72 billion. 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. Morgan Stanley's stock trading division - the firm's specialty - saw next revenues increase to $2.26 billion from $1.99 billion a year earlier. Among the business segments, investment banking revenue rose 11.2% to $1.71 billion to top the FactSet consensus of $1.70 billion, and sales and trading revenue grew 20.2% to $4.15 billion to beat expectations of $3.35 billion.


Morgan Stanley Chief Executive James Gorman has spent billions in recent months to make the megabank less reliant on trading, but Morgan Stanley's traders bucked the pandemic to deliver a big quarter. Fixed-income revenue, Morgan Stanley said, registered at £1.49 billion.

"We delivered sturdy quarterly earnings as markets remained energetic by the summer time months", Gorman wrote in an announcement saying the outcomes. Analysts had anticipated £1.70 billion and £1.23 billion of revenue from equity and fixed income, respectively.


Other reports by iNewsToday

FOLLOW OUR NEWSPAPER