Morgan Stanley said earnings for the three months ending in March came in at $1.85 per share, down 5.6% from the same period last year and firmly ahead of the Street consensus forecast of $1.65 per share. Group revenues, Morgan Stanley said, rose 10.4% to $14.8 billion, again topping analysts' forecasts of a $14 billion tally.
Wealth management inflows surged to a record $120 billion over the quarter, the bank said, taking in $6.1 billion in revenues, a 30% increase from last year.
“The Firm delivered another very strong quarter, with contributions from all of our businesses. Our Wealth and Investment Management businesses attracted $120 billion in flows and Institutional Securities generated over $7 billion in revenues," said CEO James Gorman. "With our transformed business model providing more stable and durable earnings, we have doubled our dividend and announced a $12 billion buyback as we move to return our excess capital to shareholders."
"Our global franchise is very well positioned to drive further growth,” he added.
Morgan Stanley shares were marked 1.25% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $91.30 each, a move that would still leave the stock with a year-to-date gain of around 33.2%.
Earlier this week, JPMorgan Chase (JPM) - Get Report posted a 37% increase in investment banking revenues that helped offset an 8% slump in net interest income.
JPMorgan said earnings for the three months ending in June were pegged at $3.78 per share, up 174% from the same period last year and well ahead of the Street consensus forecast of $3.18 per share.
Goldman Sachs Group (GS) - Get Report also used a 36% surge in investment banking revenues, alongside a topline gain in asset management, to post stronger-than-expected earnings of $15.02 per share Tuesday, nearly 140% higher than last year's tally and firmly ahead of the Street consensus forecast of $10.24 per share.
Bank of America (BAC) - Get Report said profit for the three months ended in June were tabbed at $1.03 per share, up 178% from the same period last year and firmly ahead of the Street consensus forecast of 77 cents per share.
Bank of America also released $2.2 billion in loan loss reserves which boosted its bottom line, and added benefits from a tax change in the United Kingdom.