Deal surge powers Morgan Stanley to new heights — $18.2B in revenue and counting

Morgan Stanley Profit Beats Estimates on Dealmaking Surge; Shares Soar
NEW YORK, Oct 15 — Morgan Stanley reported third-quarter profit that beat Wall Street estimates, driven by a surge in dealmaking and record revenue. The bank’s shares jumped 6.7% to a record high, up 32% so far this year.

CEO Ted Pick said on a call with analysts that the bank’s equities division “affirmed its number one position” as a rebound in investment banking reopened opportunities for mergers, acquisitions, and financing.

Investment banking revenue soared 44% to $2.11 billion, while equities trading rose 35% to $4.12 billion. Total revenue hit a record $18.2 billion, exceeding forecasts of $16.7 billion. Net profit climbed to $4.6 billion, or $2.80 per share, well above estimates of $2.10.

CFO Sharon Yeshaya said the bank’s investment banking pipeline is at “all-time highs,” with strong IPO activity expected next year. She added that the macroeconomic outlook is improving, with lower debt costs and higher GDP expectations.

Wealth management revenue rose 13% to a record $8.2 billion, bringing total assets under management to $8.9 trillion, close to the $10 trillion goal.

A strong U.S. economy, optimism over interest rate cuts, and relaxed regulations under the Trump administration have boosted global M&A activity past $3 trillion this year.

“This is a great quarter for Morgan Stanley, with beats across the board,” said Citigroup analyst Keith Horowitz.

(Reuters)