Morgan Stanley Q3 2017 earnings were released before opening bell this morning. The firm reported earnings of 93 cents per share on $9.2 billion in revenue, compared to the consensus estimates of 81 cents per share on $9 billion in revenue. In the year-ago quarter, the firm reported earnings of 81 cents per share on $8.9 billion in revenue.
“Our third quarter results reflected the stability our Wealth Management, Investment Banking and Investment Management businesses bring when our Sales and Trading business faces a subdued environment,” CEO James Gorman said in a statement with the Morgan Stanley Q3 2017 earnings release. “Our balanced business model and the consistent performance of our franchise enabled us to deliver solid returns for our shareholders.”
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Institutional Securities revenues fell to $4.4 billion from $4.55 billion last year. The firm’s investment banking revenues rose to $1.3 billion from $1.1 billion a year ago. Equity underwriting revenue rose from $236 million last year to $273 million this year. Sales and trading revenues fell to $2.9 billion from $3.2 billion last year. Equity sales and trading revenues were flat at $2.9 billion, while fixed income trading revenues declined to $1.2 billion from $1.5 billion in the year-ago quarter, but that was still a little better than what Wall Street had been expecting.
Morgan Stanley’s Wealth Management revenue ticked higher to $4.22 billion from $3.9 billion last year. Analysts had been expecting wealth management revenue of $4.21 billion. Asset management fee revenues rose to $2.4 billion from $2.1 billion last year, while transactional revenues fell to $739 million from $791 million last year. Net interest income rose to $1 billion from $885 million last year. Total client assets amounted to $2.3 trillion, while client assets in fee-based accounts were $1 trillion as of the end of the quarter.
Investment Management revenues increased to $675 million from $552 million in the year-ago quarter. Asset management fee revenues rose to $568 million from $508 million last year.
Following the Morgan Stanley Q3 2017 earnings release, the firm’s stock ticked higher by as much as 1.04% to 49.45 in premarket trades.