Morgan Stanley said that it had $0.93 in earnings per share (EPS) and $9.2 billion in revenue. Consensus estimates from Thomson Reuters had called for $0.81 in EPS and revenue of $9.01 billion. In the third quarter of last year, the investment bank posted EPS of $0.80 and $8.91 billion in revenue.
Institutional net revenues for the current quarter were $4.4 billion, compared with $4.6 billion a year ago. This consisted of Investment Banking revenues of $1.3 billion and Sales and Trading net revenues of $2.9 billion.
Wealth Management net revenues totaled $4.2 billion, compared with $3.9 billion, and Investment Management net revenues were $675 million, versus $552 million last year.
Morgan Stanley’s Common Equity Tier 1 and Tier 1 risk-based capital ratios under Standardized Approach transitional provisions were roughly 16.9% and 19.2%, respectively.
At the end of the quarter, book value and tangible book value per common share were $38.87 and $33.86, respectively.
The annualized return on average common equity was 9.6% in the current quarter and 9.8% for the first nine months of 2017.
James P. Gorman, board chair and chief executive, commented:
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.
Shares of Morgan Stanley were about 1.7% at $49.75 Tuesday morning, with a consensus analyst price target of $50.96 and a 52-week trading range of $32.04 to $49.79.