Morgan Stanley reported better-than-expected first-quarter earnings on Tuesday, with its investment banking division benefiting in particular from the upturn in the IPO market.

This morning, the US firm reported group share net income of $3.4 billion, or $2.02 per share, compared with $3 billion, or $1.70 per share, a year earlier.

This figure far exceeds the consensus figure of $1.66.

Morgan, the last major US bank to publish its quarterly accounts, reported a rise in quarterly revenues to $15.1 billion, compared with $14.5 billion a year earlier.

This performance again beat market forecasts, which were targeting an average of $14.4 billion.

Income from investment banking, which includes mergers & acquisitions (M&A) advisory services and bond issues, climbed by 16% to $1.45 billion, driven mainly by initial public offerings (IPOs).

MS was one of the lead managers of Reddit's IPO, which took place last month.

Income from equity trading rose slightly to $2.8 billion from $2.7 billion, while wealth management generated $6.9 billion in revenues, compared with $6.6 billion a year earlier.

Following this publication, Morgan Stanley shares gained over 3% in pre-market trading.

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