Morgan Stanley said robust dealmaking and wealth management revenues pushed quarterly profits 36 percent higher from a year earlier, beating analysts’ expectations.
The Wall Street behemoth on Thursday reported a profit of $3.71 billion, or $1.98 a share, on revenue of $14.75 billion. Analysts had predicted the bank would report $1.69 a share on revenue of $13.93 billion, according to FactSet.
As the economy comes roaring back, dealmaking, capital raising and IPOs have pushed all major firms revenue higher, including rivals JPMorgan and Goldman Sachs.
Morgan Stanley’s investment banking revenue was up 67 percent from last year as record advisory fees surged to $1.27 billion — roughly triple what it was last year.
But now Morgan Stanley is also starting to reap the benefits of acquisitions including investment management company Eaton Vance and trading platform E*TRADE.
“Year-to-date, our successful integrations of E*TRADE and Eaton Vance have supported growth of $400 billion in net new client assets across Wealth and Investment Management, bringing our total combined client assets to $6.2 trillion,” Chief Executive James Gorman said in a statement.
The bank said its E*TRADE play helped boost wealth management revenue 28 percent higher. Likewise, Morgan Stanley said its Eaton Vance acquisition helped buoy its investment management revenue 38 percent.
Morgan Stanley stock opened the day 0.9 percent higher with shares trading at $99.45. Shares are up more than 30 percent this year.
Morgan Stanley’s report comes the day after JPMorgan announced surprisingly strong earnings.