Categories AlphaGraphs, Earnings, Finance

Active trading lifts Morgan Stanley results in Q1

Morgan Stanley (MS) — the last major investment bank to report earnings — soundly exceeded market expectations during the first quarter of 2018, primarily driven by an increase in equity trading as well as a lower corporate tax rate, which allowed other major national banks also to report higher profits.

After its rivals, JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) set the tone for higher profits, expectations for the quarter had been relatively high.

The bank’s quarterly profit during the first quarter surged 38% to $2.67 billion from $1.93 billion a year ago, while EPS jumped 45% to $1.45. Revenue came in at $11.08 billion, an increase of 14%.  The bank’s share price rose about 2.5% to $54.44 in pre-market trading.

Morgan Stanley Q1 2018 Earnings Infographic

 

Morgan Stanley’s sales and trading revenue surged 26% to $4.40 billion due to an increase in the equities trading revenues that rose almost 27% to $2.6 billion. This rise in equities trading was due to strong performance across the bank’s products and regions and higher client activity. Goldman Sachs earlier reported a 31% rise in its total trading revenue.

Morgan Stanley, under its CEO James Gorman, set out new financial targets early this year. The update included a cost-to-revenue ratio of about 73%, ROE of 10-13% and annual pretax profit margins of 26-28% for wealth management. It appears that the bank can easily attain most of these targets, considering the impact of the new tax law.

Most Popular

GameStop (GME) Earnings: Q1 loss narrows on 25% sales growth

Video game retailer GameStop Corp. (NYSE: GME), which has become the talk of the town after the unprecedented stock rally in recent weeks, reported a narrower loss for the first

Should you invest in Steel Dynamics (STLD) stock after 78% rally?

The steel industry managed to shrug off the pandemic blues earlier than expected as the recovery in industrial activity pushed up demand. With the vaccination drive and the government’s aggressive

Campbell Soup (CPB) Q3 Earnings: Key financials and quarterly highlights

Campbell Soup Company (NYSE: CPB) reported third-quarter 2021 earnings results today. Net sales decreased 11% year-over-year to $1.98 billion, as a result of lapping the demand surge at the onset

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top