On Tuesday, Morgan Stanley (NYSE: MS) announced a higher than expected quarterly profit where earnings jumped 8.7% to $4.22 billion and generated pretax margin of 26.5% which topped above an expected ranged of 23-25%. Shares of the company rose 1.4% in premarket trading as well.
These third quarter results reflect the stability of the Morgan Stanley’s wealth management as well as their investment banking and investment management businesses. The return on equity was 9.6% for the quarter which also topped the expectation of 9-11% by the end of this year. The firm’s net income rose 11% to $1.69 billion with earnings per share rising from 81 cents to 93 cents.
James P. Gorman, Chairman and Chief Executive Officer, said, “Our third quarter results reflected the stability our Wealth Management, Investment Banking and Investment Management businesses bring when our Sales and Trading business faces a subdued environment. Our balanced business model and the consistent performance of our franchise enabled us to deliver solid returns for our shareholders.”