Morgan Stanley Q3 Profit Rises 36%

morganstanley 0416 14oct21 lt

Financial services firm Morgan Stanley (MS) reported Thursday a profit for the third quarter that increased 36 percent from last year, reflecting 26 percent revenue growth amidst strength across all business segments and regions.

"We had standout performance of our integrated Investment Bank and record net new assets of $135 billion in Wealth Management," said James Gorman, Chairman and CEO.

For the third quarter, the company reported net income applicable to the company's shareholders of $3.71 billion or $1.98 per share, up from $2.72 billion or $1.66 per share in the year-ago quarter.

Excluding items, adjusted earnings for the quarter were $2.04 per share, compared to $1.66 per share in the year-ago quarter.

Net revenues for the quarter increased 26 percent to $14.75 billion from $11.72 billion in the same quarter last year.

Net interest income increased 39 percent to $2.06 billion and non-interest income grew 24 percent to $12.69 billion from last year. Total non-interest expenses increased 16 percent to $9.86 billion from last year.

Institutional Securities net revenues grew to $7.50 billion from $6.13 billion, reflecting record Investment Banking revenues, led by advisory, continued strong performance in Equity, and solid results in Fixed Income.

Wealth Management net revenues also increased to $5.94 billion from last year's $4.65 billion, reflecting the E*TRADE acquisition and strong bank lending growth.

Investment Management net revenues were $1.45 billion, up 38 percent from $1.06 billion a year ago, driven by increased asset management fees and Assets Under management (AUM).

The company's provision for credit losses on loans and lending commitments was $24 million, down 78 percent from $111 million in the year-ago quarter, as a result of an improved macroeconomic environment.

The company's board of directors declared a $0.70 quarterly dividend per share, payable on November 15, 2021 to common shareholders of record on October 29, 2021.

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