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Morgan Stanley shares (MS) rose 2.2% in premarket trade Wednesday, after the bank blew past estimates for its fourth quarter. The bank said it had net income of $3.4 billion, or $1.81 a share, in the quarter, up from $2.2 billion, or $1.30 a share, in the year-earlier period. Revenue rose to $13.6 billion from $10.9 billion. The FactSet consensus was for EPS of $1.30 and revenue of $11.6 billion. The year-earlier numbers were impacted by the acquisition of ETrade, which was completed on Oct. 2, and is included in the wealth management segment, the bank said in a statement. Investment banking revenue rose 46% in the quarter to $7.004 billion, as higher advisory revenues for M&A and a more than doubling of equity underwriting revenue offset a decline in debt underwriting. Sales and trading revenues rose 32% from a year ago to $4.220 billion, boosted by gains in equity and fixed income trading. The bank's wealth management division delivered revenue of $5.7 billion, up from $4.6 billion a year ago. Net interest income rose to $1.207 billion from $1.033 billion. Investment management revenues fell to $1.1 billion from $1.4 billion a year ago. Shares have gained 30% in the last 12 months, while the S&P 500 has gained 14%.

-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com

(END) Dow Jones Newswires

January 20, 2021 07:49 ET (12:49 GMT)

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