Morgan Stanley Q3 Earnings: Investment Banking Revenue Falls, Provision For Losses Rise

Morgan Stanley MS reported a Q3 net profit of $2.4 billion, or $1.38 per diluted share, compared to a net income of $2.6 billion or $1.47 in the prior year. 

The company reported revenues of $13.27 billion, beating the consensus of $12.58 billion.

The wealth management division generated $6.4 billion in revenue, up 5%.

Investment banking produced $938 million in revenue, down 27%, driven by fewer completed M&A transactions.

"While the market environment remained mixed this quarter, the Firm delivered solid results with an ROTCE of 13.5%. Our Equity and Fixed Income businesses navigated markets well, and both Wealth and Investment Management produced higher revenues and profits year-over-year," CEO James Gorman said.

Investment Management net revenues of $1.3 billion increased compared to a year ago on higher asset management revenues and AUM of $1.4 trillion.

Fixed Income net revenues decreased 11% to $1.95 billion as lower client activity and less favorable market conditions drove declines in rates and foreign exchange.

Morgan Stanley's CEO told Reuters that M&A announcements will translate into revenue in the first and second quarters of 2024.

Price Action: MS shares are down 5.76% at $75.70 on the last check Wednesday.