October 16, 2024 - $Morgan Stanley (MS.US)$ shares increased 7.58% to $120.728 on Wednesday, reaching a new all-time high. The company today released its third-quarter earnings report, showing that the company's net revenue for the quarter was $15.38 billion, surpassing the anticipated $14.35 billion. Revenue from Institutional Securities, Wealth Management and Investment Management all exceeded expectations.

Financial Highlights

• Net revenues for the third quarter were $15.4 billion, demonstrating the strength of our Integrated Firm with strong results across our business segments.

• The Firm delivered ROTCE of 17.5% during the third quarter and 18.2% year-to-date.

• The Firm expense efficiency ratio was 72% for both the third quarter and year-to-date, benefiting from our scale and disciplined expense management while maintaining strong infrastructure to support ongoing growth.

• During the quarter, the Firm accreted $2.1 billion of Common Equity Tier 1 capital and ended the quarter with a Standardized Common Equity Tier 1 capital ratio of 15.1%.

• Institutional Securities net revenues of $6.8 billion reflect strong performance in Equity and Fixed Income on higher client activity and increased momentum in Investment Banking.

• Wealth Management delivered a pre-tax margin of 28.3% for the quarter. Record net revenues of $7.3 billion reflect strong asset management and transactional revenues. The business added net new assets of $64 billion in the quarter and total client assets reached $6 trillion. Fee-based asset flows were $36 billion for the quarter and total feebased assets reached $2.3 trillion.

• Investment Management results reflect net revenues of $1.5 billion, primarily driven by asset management revenues on higher average AUM. The quarter included positive long-term net flows of $7 billion and end-of-period AUM of $1.6 trillion.

CEO Statement

Ted Pick, Chief Executive Officer, said, “The Firm reported a strong third quarter in a constructive environment across our global footprint. Institutional Securities saw momentum in the markets and underwriting businesses on solid client engagement. Total client assets have surpassed $7.5 trillion across Wealth and Investment Management supported by buoyant equity markets and net asset inflows. Our business model is delivering strong returns while accreting capital, producing an ROTCE of 18.2% through the first three quarters of 2024. Our management continues to be focused on driving durable growth and realizing long-term returns for our shareholders.”

Related reading: Morgan Stanley Third Quarter 2024 Earnings Results