Morgan Stanley (NYSE: MS) reported third-quarter earnings Tuesday that topped expectations after its wealth management business posted strong results, while its fixed income and equities traders navigated a tough environment better than peers at firms such as JPMorgan (NYSE: JPM).
The bank reported earnings per share of 93 cents in contrast to the 81 cents projected by analysts. Revenue was $9.197 billion versus the expected $9.015 billion.
Morgan Stanley reported a nearly 9% increase in net wealth management revenue to $4.22 billion, slightly better than the $4.21 billion. Overall sales and trading revenue fell to $2.9 billion from $3.2 billion a year ago, an 8% decline.
Morgan Stanley also reported encouraging results within wealth management. The pre-tax margin rose to 26.5% from 23% in the third quarter last year.
CEO James P. Gorman 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."
Morgan Stanley shares are among the better-performing financial stocks in 2017. Shares are up almost 16% for the year and nearly 44% since the election.
Tuesday morning, those shares were up 47 cents, or nearly 1%, to $49.41.
