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

Snowflake (SNOW) appears to be on solid footing despite cloud slowdown

The cloud computing market witnessed accelerated growth in the last couple of years, as enterprises across the world shifted their digital assets to cloud for ensuring safety and enhancing data

Dollar Tree (DLTR) vs. Dollar General (DG): How did the third quarter turn out for these discount retailers?

In times of high inflation and economic uncertainty, consumers tend to turn to discount retailers in search of more value. The two leading discount retailers Dollar Tree Inc. (NASDAQ: DLTR)

Kroger (KR) looks set to start 2023 with new vigor. Is the stock a buy?

The retail environment has witnessed many changes in customers’ shopping behavior lately, especially after the COVID outbreak. With inflation putting pressure on personal finances, there appears to be a new


Add Comment
Viewing Highlight