Morgan Stanley: consensus beaten, thanks to IPOs

(CercleFinance.com) - Morgan Stanley reported better-than-expected Q1 earnings on Tuesday, with its investment banking division notably benefiting from the upturn in the IPO market.


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

This figure far exceeds the consensus - which expected a slight y-o-y fall to $1.66.

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

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

Income from investment banking, which includes mergers & acquisitions (M&A) advisory services and bond issues, climbed by 16% to $1.45bn, 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 $2.8bn from $2.7bn, while wealth management generated $6.9bn in revenues, compared with $6.6bn a year earlier.

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


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