The numbers: Good. Morgan Stanley said today it earned $1.7 billion in the third quarter, up 89% from the same period a year earlier. Revenue rose 12% to $8.9 billion.
The numbers: Good. Morgan Stanley $MS said today it earned $1.7 billion in the third quarter, up 89% from the same period a year earlier. Revenue rose 12% to $8.9 billion.
The takeaway: Another impressive quarter for Morgan Stanley in all three main areas of its business. Revenue from wealth management rose 8.6% from a year earlier to $3.8 billion. Trading revenues rose 8% to $2.4 billion. Sales at investment banking, which includes advising companies on mergers, acquisitions and initial public offerings, climbed 34%, to $1.6 billion.
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What’s interesting: Morgan Stanley, which has pulled back from fixed-income trading, derives twice as much of its trading revenues from buying and selling stocks as opposed to corporate bonds. Revenues from trading fixed income and commodities rose 19.4%, to $997 million, while the take from equities trading totaled $1.8 billon, up 6% from a year ago.
By contrast, trading of fixed-income securities contributed 55% of trading revenue at Goldman Sachs $GS in the latest quarter. JPMorgan $JPM Chase earned more than twice as much revenue from trading bonds as it did from trading stocks. At Citigroup $C, make that four times as much.
