Morgan Stanley shares rose more than 5%, tops among large U.S. banks Wednesday, after its profit jumped in the third quarter, fueled by a surge in dealmaking and trading revenue.
The New York-based bank joined Goldman Sachs, JPMorgan Chase and other large banks that all beat profit and revenue forecasts for the quarter. Dealmaking, trading and corporate lending are gaining steam and boosting profits at the nation’s biggest banks.
Morgan Stanley on Wednesday said its profit surged 45% to $4.61 billion for the quarter. That amounted to $2.80 per share, easily surpassing the $2.10 per share analysts expected.
Its revenue increased 18% to $18.22 billion. Analysts had expected $16.69 billion. Investment-banking revenue increased 44%, with big increases in equity and debt underwriting.
Trading revenue increased, led by a 35% increase in equities.
Record-high stock markets fueled increased trading and borrowing by hedge funds and others to buy even more securities.
In Morgan Stanley’s wealth management division, revenue rose 13%.
