Morgan Stanley beat earnings forecasts by the best margin in 5 years. The stock has a record

Morgan Stanley, one of the largest U.S. banks , beat analysts' expectations for third-quarter earnings by the largest margin in nearly five years, CNBC reported. The bank's shares set a record at trading on October 15.

The bank's net income rose 45% year-on-year to $4.6 billion, according to reports. Adjusted earnings per share amounted to $2.8 against the Wall Street consensus forecast of $2.1 (according to LSEG data cited by CNBC).

Morgan Stanley's revenue increased by 18% to a record $18.2 billion. The investment business made a significant contribution: its revenue for the quarter increased by 43% year-on-year to $2.2 billion, which is about $430 million above StreetAccount's estimate. The bank attributed the growth to an increase in the number of completed mergers, the activation of IPOs and the growth of borrowing in the bond market. Morgan Stanley was among a number of co-organizers of large IPOs in the reporting period, including placements of software maker Figma and Swedish fintech startup Klarna, specified Reuters.

The bank's revenue from operations with shares added 35% and reached $4.1 billion, exceeding the forecast of analysts StreetAccount by $720 million. This was facilitated by record results in the segment prime brokerage (servicing hedge funds and large institutional clients), the agency notes.

Revenue in the wealth management unit, a key area for Morgan Stanley, rose to a record $8.2 billion in the quarter on the back of higher market value of assets, Reuters added.

Shares of the bank grew by 7.35% during the trades on October 15. They rose to almost $166.8, which became the maximum for all time of their circulation on the stock exchange. Since the beginning of 2025 the securities have risen in price by 30%.

Morgan Stanley published its reports on the same day as Bank of America. The latter also reported an increase in profits by almost a quarter. A day earlier, JPMorgan, Goldman Sachs, Citigroup and Wells Fargo also reported successfully.

Bank reports are an indicator of capital markets activity, Barron's wrote, and their results point to the strength of consumer finance and reflect strong growth in key areas for Wall Street, the publication added.

This article was AI-translated and verified by a human editor