Morgan Stanley Q3 revenue beats estimates on wealth management growth
MS•Morgan Stanley reported third-quarter revenue of $20.30 billion, above the $19.95 billion analyst estimate, and adjusted earnings per share of $3.03. Net income was $4.90 billion, and the company repurchased $1.5 billion in shares during the quarter.
1. Revenue and earnings
Morgan Stanley's third-quarter revenue rose to $20.30 billion, beating the $19.95 billion consensus estimate. Adjusted earnings per share were $3.03, net income was $4.90 billion, and the company repurchased $1.5 billion in shares.
2. Business drivers
Wealth Management posted record net revenues and asset flows, driven by higher market levels and strong fee-based flows. Institutional Securities revenue rose on client engagement and strong performance in Equity. The provision for credit losses was $148 million, rising mainly because of growth in corporate and secured lending portfolios and charge-offs on commercial real estate loans.
3. Capital and outlook
Morgan Stanley's standardized Common Equity Tier 1 capital ratio was 14.90%. The company did not provide specific guidance for future quarters or the full year.
