Morgan Stanley Profits Doubled
Multinational financial services company Morgan Stanley reported income that almost doubled, surpassing analysts' forecasts.
The Manhattan, New York-based company's net income during the third quarter jumped to 9 percent to $1.71 billion (84 cents per share) from $906 million (45 cents per share) back in 2013, according to a statement released in Bloomberg.
Morgan Stanley reported 65 cents per share (putting aside tax benefit and accounting adjustment), beating the analysts' estimate of 54 cents per share.
"July was a good month on the fixed-income side, August was slow, and everything was going to come down to September, and it seems September delivered-it was a small window, but that's encouraging," as stated by Devin Ryan, a bank analyst at JMP Group, Inc.
Morgan Stanley rose 4.5 percent to $34 at 7:39 a.m. in New York. The shares climbed 3.7 percent this year through yesterday, outpacing the 0.7 percent gain for the 85-company Standard & Poor's 500 Financials Index.
The company's equities revenue jumped 4 percent to $1.78 billion, while another big investment company, Bank of America Corp and Goldman Sachs got $1.03 billion and $1.46 billion, respectively.
Furthermore, its adjusted revenues during the third quarter also shoot up 7.4 percent to $8.7 billion, higher than last year's $8.1 billion and even higher than $8.17 billion analysts had predicted.
The huge jump in income was reportedly caused by the booming institutional securities and wealth management divisions of the company.
Morgan Stanley's institutional securities business, which consists of trading and investment and prime brokerage divisions, experienced boost in sales in the third quarter in pre-tax income, earning a total of $1.2 billion, higher than the $396 million in the same period last year.
Meanwhile, Morgan Stanley's Wealth management including the company's Smith Barney franchise also reported a pre-tax income of $836 million, higher than the $668 million reported a year ago.
