Morgan Stanley (NYSE: MS) shares surged more than 6% intra-day on Wednesday after the bank reported third-quarter results that handily beat expectations, driven by a sharp recovery in dealmaking and record quarterly revenue.
The Wall Street firm posted net income of $4.61 billion, or $2.80 per share, far above consensus estimates of $2.11. Net revenue totaled $18.22 billion, also well ahead of the $16.64 billion expected by analysts, according to Bloomberg data.
Investment banking revenue jumped 44% from a year earlier as merger activity and initial public offerings accelerated following months of weakness caused by tariff uncertainty. Trading revenue climbed 6.5% sequentially and 24.5% year-over-year to $6.29 billion, while the wealth management division recorded a 13% rise in revenue to $8.2 billion.
The bank said improved clarity around trade policy and recent interest rate reductions by the Federal Reserve had reignited corporate transactions, boosting advisory and capital market fees.
Morgan Stanley’s executives added that all major business lines contributed to growth, helping the firm deliver a record performance for a third quarter.
