Morgan Stanley (NYSE:MS) reported first-quarter results that came in ahead of Wall Street expectations, supported by elevated trading activity and solid client engagement during a period of heightened market volatility.
Earnings per share reached $3.43, exceeding the consensus forecast of $3.02. Revenue climbed to $20.6 billion, beating estimates of $19.7 billion and rising 16% from $17.7 billion a year earlier. Net income attributable to the firm increased to $5.6 billion, compared with $4.3 billion in the same period last year.
Shares gained 2.1% in premarket trading following the release.
“Morgan Stanley reported a record quarter,” said Ted Pick, Chairman and Chief Executive Officer. “Strong execution resulted in net revenues of $20.6 billion, EPS of $3.43 and a ROTCE of 27.1%. Institutional Securities benefited from robust client engagement and strength globally.”
The Institutional Securities division posted record net revenue of $10.7 billion, up from $9.0 billion a year ago. Equity trading revenue rose 25% to $5.1 billion, while fixed income revenue increased 29% to $3.4 billion, driven by strong client demand and volatility in energy markets. Investment banking revenue jumped 36% to $2.1 billion, supported by a higher volume of completed M&A deals.
Wealth Management also delivered record results, with net revenue rising 16% to $8.5 billion and a pre-tax margin of 30.4%. The division generated $118 billion in net new assets and $54 billion in fee-based inflows during the quarter.
Investment Management reported net revenue of $1.5 billion, alongside $3.3 billion in long-term net inflows. The firm’s return on tangible common equity improved to 27.1%, up from 23.0% a year earlier.