Morgan Stanley (NYSE:MS) reported first-quarter earnings that exceeded expectations, supported by robust trading activity and strong client engagement amid heightened market volatility. Shares climbed more than 5% intraday Wednesday.
The firm posted earnings per share of $3.43, beating the analyst consensus of $3.02. Revenue reached $20.6 billion, surpassing the $19.7 billion estimate and rising 16% from $17.7 billion a year earlier. Net income attributable to Morgan Stanley increased to $5.6 billion from $4.3 billion in the prior-year period.
The Institutional Securities division delivered record net revenues of $10.7 billion, up from $9.0 billion. Equity trading revenue surged 25% to $5.1 billion, while Fixed Income revenue increased 29% to $3.4 billion, driven by strong client activity and volatility in energy markets. Investment Banking revenue rose 36% to $2.1 billion, reflecting higher completed M&A transactions.
Wealth Management also reported record net revenues of $8.5 billion, up 16% from $7.3 billion, with a pre-tax margin of 30.4%. The segment generated net new assets of $118 billion and fee-based flows of $54 billion during the quarter.
Investment Management recorded net revenues of $1.5 billion, with long-term net inflows of $3.3 billion. The firm’s return on tangible common equity improved to 27.1% from 23.0% in the prior-year quarter.
