Morgan Stanley exceeds expectations with strong wealth management, trading, and banking outcomes.

• Morgan Stanley exceeded analysts' expectations for third quarter profit, with all three of its main divisions generating higher revenue than anticipated.
• The bank reported a 32% increase in profit to $3.2 billion, which translates to $1.88 per share, and a 16% rise in revenue to $15.38 billion.

On Wednesday, analysts' estimates for third quarter profit were exceeded as each of its three main divisions generated more revenue than anticipated.

Here's what the company reported:

• Earnings:$1.88 a share vs $1.58 LSEG estimate
• Revenue: $15.38 billion vs. $14.41 billion estimate

The bank reported a 32% increase in profit to $3.2 billion, which translates to $1.88 per share, and a 16% rise in revenue to $15.38 billion.

Morgan Stanley experienced several favorable conditions, including a thriving wealth management business due to buoyant markets, a resurgence in investment banking after a poor 2023, and robust trading activity. The Federal Reserve's decision to lower interest rates in the quarter could stimulate more financing and merger activity that Wall Street firms profit from.

In the release, Morgan Stanley CEO Ted Pick stated that the firm had a strong third quarter in a positive global environment.

Shares of the bank advanced 3.6% in premarket trading.

The wealth management division of the bank experienced a 14% increase in revenue from the previous year, reaching $7.27 billion, which was $390 million higher than the StreetAccount forecast.

The equity trading revenue increased by 21% to $3.05 billion, surpassing the $2.77 billion forecast, while the fixed income revenues also rose by 3% to $2 billion, exceeding the $1.85 billion prediction.

The revenue from investment banking increased by 56% from the previous year to $1.46 billion, surpassing the predicted $1.36 billion.

The firm's smallest division, investment management, surpassed expectations with a 9% increase in revenue to $1.46 billion, slightly higher than the predicted $1.42 billion.

Wall Street rivals of Morgan Stanley, including Goldman Sachs and Citigroup, also reported better-than-expected revenue.

This story is developing. Please check back for updates.