Morgan Stanley beats, posts record quarter

Morgan Stanley posted a huge first-quarter earnings beat on Wednesday morning.

The bank reported adjusted earnings of $US1.45 a share, a 45% increase from last year and well ahead of analyst expectations of $US1.28 a share.

Here are the key numbers (emphasis added):

  • Revenue: $US11.1 billion, up 14% from last year and a record.
  • Adjusted net income: $US2.7 billion, up 38% from last year and also a record.
  • Equities: Revenue of $US2.6 billion, up 27% from last year and a record.
  • Fixed income: Revenue of $US1.9 billion, the highest number since the first quarter of 2015.
  • Investment banking: Revenue of $US1.5 billion, up from $US1.4 billion a year earlier, with advisory and equity underwriting fees up.
  • Wealth Management: Revenue of $US4.4 billion, and record pretax income of $US1.2 billion.

“We delivered very strong results this quarter, with record revenues and net income – and an ROE above our target range,” CEO James Gorman said.

Morgan Stanley is the last big bank to report first-quarter earnings. Goldman Sachs on Tuesday joined Bank of America Merrill Lynch, Citigroup, and JPMorgan in reporting first-quarter earnings that beat analyst expectations.

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