Morgan Stanley Tops Goldman Sachs; Shares Jump

Published on: 20 Jul, 2017

Shares of Morgan Stanley (NYSE: MS) were up in morning trading today as it opened up at $46.95, up 3.9% and at noon is currently sitting at $46.08, up $0.91 and around 2%. Shares jumped as the bank reported better-than-expected earnings for the second quarter and better trading revenue than most of its peers, such as Goldman Sachs Group Inc.

Across Morgan Stanley, second-quarter profit rose to $1.6 billion, or 87 cents per share, from $1.4 billion, or 75 cents per share, in the same period last year. This also beat analyst’s expected earnings of 76 cents per share. The bank also raked in revenue of $9.50 billion, a 7% increase from the same period last year, topping the estimated $9.09 billion. Morgan Stanley saw gains in many departments such as their wealth management business which rose 9% to $4.2 billion and also saw a 14% increase in investment management to $655million.

Morgan Stanley’s overall trade revenue fell as many other banks have seen declines in trade revenue. However, Morgan Stanley’s overall trade revenue only fell a miniscule 2% to $3.2 billion, beating out Goldman’s trading revenue of $3.1 billion. Morgan Stanley also posted only a small drop in bond trading, falling 4%. Given a sharp decline in fixed income revenues at rival Goldman Sachs, where revenues fell 40% to $1.16 billion, the results mean that Morgan Stanley bested Goldman Sachs in fixed income for the second quarter in a row. Morgan Stanley’s 9.1% return on equity was also higher than Goldman’s 8.7% return.

From this year to date, Morgan Stanley shares are up 10% as the future looks bright for the company.

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Steven Liao

Email: Steven@financialinsiders.com

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