Morgan Stanley CEO Ted Pick speaks on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland, on January 23, 2025.
Jerry Miller | CNBC
morgan stanley On Wednesday, the company reported results that beat analysts’ expectations, as its trading business generated revenue of almost $1 billion more than expected.
Here’s what the company reported:
Earnings: $3.43 per share (vs. LSEG estimate of $3) Revenue: $20.58 billion vs. LSEG estimate of $19.72 billion
The bank said profit rose 29% to $5.57 billion, or $3.43 per share. Revenue rose 16% to $20.58 billion, driven by gains from trading, investment banking and wealth management businesses.
Equity trading revenue rose 25% to a record $5.15 billion, beating Street accounts’ expectations by about $450 million. The company cited strong trading volumes across its global equity franchise, particularly its prime brokerage and derivatives businesses for hedge funds.
Fixed income income rose 29% to $3.36 billion, about $540 million more than expected. It was supported by commodity trading, which benefited from fluctuations in the energy market during this period.
Investment banking revenue rose 36% to $2.12 billion, broadly in line with Street accounts’ expectations, due to completed mergers and higher fees associated with underwriting stocks and debt.
Wealth management revenue rose 16% to a record $8.52 billion due to rising asset values and fee-generating transactions.
Revenue in the company’s investment management business, the company’s smallest division, fell 4.2% to $1.54 billion, about $110 million less than expected. Morgan Stanley cited a decline in private fund carryover rates as the cause of the decline in performance.
Analysts will be curious to hear what CEO Ted Pick has to say about the business outlook for the rest of the year as geopolitical tensions remain high.
This story is developing. Please check back for the latest information.
