Unveiling the Future: Explore Morgan Stanley’s (MS) 3Q 2023 Earnings Report

Morgan Stanley posted third-quarter results Wednesday that exceeded profit estimates due to better-than-expected trading revenue.

Here’s what the company reported:

• Earnings per share: $1.38, compared to the estimated $1.28
• Revenue: $13.27 billion, compared to the expected $13.23 billion

Profit decreased by 9% to $2.41 billion, or $1.38 per share, from the previous year, according to a statement released by the New York-based bank. Revenue increased by 2% to $13.27 billion, in line with expectations.

The bank’s shares dropped by as much as 7% in early trading.

Morgan Stanley’s strong trading operations offset revenue losses in other areas of the firm. The bank’s bond traders generated $1.95 billion in revenue, approximately $200 million more than the StreetAccount estimate, while equity traders brought in $2.51 billion in revenue, $100 million more than expected.

However, the bank’s crucial wealth management division earned $6.4 billion in revenue, falling more than $200 million short of the estimate due to rising compensation costs and a 9% decrease in net interest income from the previous quarter.

There was also a revenue miss in the investment banking sector, which generated $938 million, below the expected $1.11 billion, as the company cited weak mergers and IPO listings. The bank’s investment management division met expectations with $1.34 billion in revenue.