Morgan Stanley (NYSE:MS) shares were up 6.7% on Wednesday morning after the bank’s third quarter earnings beat Wall Street expectations across all divisions, driven by strong trading, investment banking, and wealth management performance.
Earnings per share were $2.80, beating estimates of $2.10 and rising 49% from a year earlier.
Revenue climbed 18.5% to $18.22 billion, surpassing forecasts of $16.69 billion, while net income rose to $4.6 billion from $3.2 billion.
The firm’s return on tangible common equity (ROTCE) reached a record 23.5%.
Jefferies analysts wrote that the results demonstrated “well-rounded strength,” noting broad-based outperformance and improved efficiency, with an efficiency ratio of 66.9% versus a 70% long-term target.
The Institutional Securities Group posted $8.5 billion in revenue, led by a 35% surge in equities trading and a 44% rebound in investment banking, driven by debt and equity issuance.
Wealth Management earned $8.2 billion, with a pre-tax margin of 31.3% and $81 billion in net new assets, while Investment Management contributed $1.7 billion, supported by $16.5 billion in long-term inflows.
Morgan Stanley repurchased $1.1 billion in stock during the quarter and maintained a CET1 ratio of 15.2%.
“Our Integrated Firm delivered an outstanding quarter with strong performance in each of our businesses globally,” Morgan Stanley CEO Ted Pick said in a statement. “Consistent execution of our strategy led to record revenues of $18.2 billion, EPS of $2.80, and a ROTCE of 23.5%.”