Morgan Stanley beat Wall Street estimates for third-quarter profit on Wednesday as volatile markets boosted equity trading, Reuters reported.
Profit attributable to the bank was $4.91 billion, or $3.03 a share, compared with $4.61 billion, or $2.80 a share, a year earlier. Analysts had expected $2.91 a share, according to LSEG estimates. Net revenue rose to $20.34 billion from $18.22 billion a year ago, above the $19.95 billion expected.
Equities up, fixed income down
Equity trading revenue reached $5.8 billion, up nearly 41% from a year earlier, as swings in interest-rate expectations and the US-Iran war pushed investors to rebalance portfolios. Fixed-income trading revenue fell 7.3% to $2.01 billion. Chief financial officer Sharon Yeshaya said the sharp rise in interest rates during the quarter hurt clients holding bond portfolios, widened credit spreads and made it harder for those who must hold inventory. Rival Goldman Sachs, which reported a day earlier, also posted a similar jump in equities trading.
Deals and wealth management
Investment banking revenue rose 2% to $2.16 billion. Global deal value fell 41% from the previous quarter to $993 billion, dipping below $1 trillion for the first time since the second quarter of 2025, LSEG data showed. Yeshaya said she expects IPOs that were cancelled in the third quarter to return over the coming quarters as valuation expectations adjust.
The wealth management unit reported record net new assets of $232 billion, with just over half linked to IPO-related flows. Net revenue at the unit rose 10.1% to $9.07 billion, slightly below forecasts, according to AJ Bell’s Daniel Coatsworth. Investment management revenue slipped to $1.46 billion from $1.65 billion. Morgan Stanley shares were down about 2.5% before the opening bell.
Sources: Reuters via Investing.com.
