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Key Takeaways
- Morgan Stanley’s first-quarter profit soared as revenue from investment banking, wealth management, and trading grew.
- Equity underwriting revenue more than doubled on increased IPO activity.
- Assets under management (AUM) rose by $143 billion to $1.51 trillion.
Morgan Stanley (MS) significantly exceeded profit expectations in the first quarter on strong investment banking, wealth management, and trading revenue.
The financial firm posted earnings per share (EPS) of $2.02, well above estimates. Revenue rose 4% to $15.14 billion, also above forecasts.
Investment banking revenue gained 16% to $1.45 billion, boosted by a 113% jump in equity underwriting because of increased demand for initial public offerings (IPOs) and follow-ons. Revenue from wealth management ($6.88 billion) and trading ($4.85 billion) rose 5% and 8%, respectively. Assets under management (AUM) added $143 billion to $1.51 trillion.
Morgan Stanley noted its return on average tangible common shareholder equity (ROTCE) was 19.7%, up from 16.9% a year earlier.
Chief Executive Officer (CEO) Ted Pick, who took over on Jan. 1, said the bank’s “Integrated Firm model is delivering durable results.”
While the news lifted Morgan Stanley shares nearly 4% shortly before the opening bell Tuesday, they were down 7.4% thus far in 2024 through Monday’s closing level of $86.99.