Morgan Stanley’s profit leaps 32% as deal-making rebounds
A revival in corporate debt issuance, initial public offerings and mergers have bolstered profits for investment banks this year
16 October 2024 - 14:34
byManya Saini, Niket Nishant and Tatiana Bautzer
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The Morgan Stanley logo is displayed at the post where it is traded on the floor of the New York Stock Exchange in New York, US. Picture: BRENDAN MCDERMID/REUTERS
Bengaluru/New York — Morgan Stanley’s third-quarter profit surged 32%, fuelled by a rebound in deal making that had also buoyed its rivals, sending its shares up 3% before the market open.
The investment bank posted a profit of $3.19bn on Wednesday, or $1.88 per share, for the three months ended September 30. That compares with $2.41bn, or $1.38 per share, a year earlier.
A revival in corporate debt issuance, initial public offerings and mergers have bolstered profits for investment banks this year.
As markets hover near record highs and the US Federal Reserve begins its policy-easing cycle, bankers expressed optimism that M&A activity will continue to recover after a two-year drought.
“The firm reported a strong third quarter in a constructive environment across our global footprint,” CEO Ted Pick said.
Morgan Stanley’s investment banking revenue jumped 56% in the third quarter. Its competitors Goldman Sachs posted a 20% surge in fees, while JPMorgan Chase experienced a 31% gain.
The bank reported a profit of $3.19bn, or $1.88 per share, for the three months to September 30. That compares with $2.41bn, or $1.38 per share, a year ago.
Across the industry, global investment banking revenue rose 21% in the first nine months of the year, led by a 31% surge in North America, according to data from Dealogic.
Morgan Stanley earned the fourth-highest fees globally over the same period, the data shows.
It was a lead underwriter on major initial public offerings in the quarter, including by cold storage giant Lineage and aeroplane engine maintenance services provider StandardAero.
Wealth management revenue, a key area of focus for Morgan Stanley, came in at $7.27bn, compared with $6.40bn a year ago.
Under former CEO James Gorman, Morgan Stanley expanded into wealth management as a way to diversify the business and generate more stable revenue than trading and investment banking, which can be volatile.
Its institutional securities business, which houses investment banking and trading, reported revenue of $6.82bn, compared with $5.67bn a year earlier.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Morgan Stanley’s profit leaps 32% as deal-making rebounds
A revival in corporate debt issuance, initial public offerings and mergers have bolstered profits for investment banks this year
Bengaluru/New York — Morgan Stanley’s third-quarter profit surged 32%, fuelled by a rebound in deal making that had also buoyed its rivals, sending its shares up 3% before the market open.
The investment bank posted a profit of $3.19bn on Wednesday, or $1.88 per share, for the three months ended September 30. That compares with $2.41bn, or $1.38 per share, a year earlier.
A revival in corporate debt issuance, initial public offerings and mergers have bolstered profits for investment banks this year.
As markets hover near record highs and the US Federal Reserve begins its policy-easing cycle, bankers expressed optimism that M&A activity will continue to recover after a two-year drought.
“The firm reported a strong third quarter in a constructive environment across our global footprint,” CEO Ted Pick said.
Morgan Stanley’s investment banking revenue jumped 56% in the third quarter. Its competitors Goldman Sachs posted a 20% surge in fees, while JPMorgan Chase experienced a 31% gain.
The bank reported a profit of $3.19bn, or $1.88 per share, for the three months to September 30. That compares with $2.41bn, or $1.38 per share, a year ago.
Across the industry, global investment banking revenue rose 21% in the first nine months of the year, led by a 31% surge in North America, according to data from Dealogic.
Morgan Stanley earned the fourth-highest fees globally over the same period, the data shows.
It was a lead underwriter on major initial public offerings in the quarter, including by cold storage giant Lineage and aeroplane engine maintenance services provider StandardAero.
Wealth management revenue, a key area of focus for Morgan Stanley, came in at $7.27bn, compared with $6.40bn a year ago.
Under former CEO James Gorman, Morgan Stanley expanded into wealth management as a way to diversify the business and generate more stable revenue than trading and investment banking, which can be volatile.
Its institutional securities business, which houses investment banking and trading, reported revenue of $6.82bn, compared with $5.67bn a year earlier.
Reuters
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