Morgan Stanley shares (MS) rose 2.3% in premarket trade Wednesday, after the bank beat profit estimates for the fourth quarter amid strong performances at its investment banking and wealth management divisions. Morgan Stanley posted net income of $3.7 billion, or $2.01 a share, for the quarter, up from $3.4 billion, or $1.81 a share, in the year-earlier period. Revenue rose to $14.524 billion from $13.597 billion a year ago. The FactSet consensus was for EPS of $1.94 and revenue of $14.558 billion. Investment banking revenues rose 6%, driven by higher M&A fees from a flurry of deals. Equity underwriting revenue fell from a year ago amid a decline in follow-on offerings and block trades, but were partially offset by higher revenue from private placements. Fixed income underwriting revenue rose, driven by higher securitized products and high-yield issuances. In trading, equity revenues rose 13% driven by higher prime brokerage revenues and a mark-to-market gain of $225 million on a strategic investment. Fixed income revenues fell 31% from a year ago in what the bank called a "challenging trading environment." In the wealth management division, revenue rose 10% from a year ago to $6.3 billion from $5.7 billion. Net interest income rose thanks to growth in lending and higher brokerage sweep deposits. Investment management revenue rose to $128 billion from $1.1 billion, driven by the acquisition of Eaton Vance, higher performance fees and higher assets under management. Shares have gained 25% in the last 12 months, while the S&P 500 has gained 20.5%.
Any recommendation, opinion or advice regarding securities or markets contained in such material does not reflect the views of TD Ameritrade, and TD Ameritrade does not verify any information included in such material.
, 
, 
Copyright ©2022. All rights reserved.