MS earnings 4Q 2021

Morgan Stanley posted better-than-expected fourth-quarter earnings on Wednesday.

Listed here are the numbers:

·        Earnings: $2.01 a share vs. estimate $1.91 a share, in line with Refinitiv.

·        Income: $14.52 billion vs. estimate $14.6 billion

The financial institution stated that equities buying and selling income rose 13% from a 12 months in the past to $2.86 billion, roughly $400 million larger than the $2.44 billion FactSet estimate. The development was pushed by rising prime brokerage income and a $225 million acquire on a strategic funding.

Funding banking income rose 6% to $2.43 billion, slightly below the $2.54 billion estimate, on larger advisory charges from mergers exercise.  

Shares of the financial institution climbed 2.8% in premarket buying and selling.

Buying and selling particularly has begun to return to extra regular volumes, if outcomes from Goldman Sachs and JPMorgan Chase are any indication. Morgan Stanley has the No. 1 ranked equities buying and selling enterprise globally.

It is also a prime participant in mergers recommendation, notably within the expertise and communications realms.

One space that ought to show resilient is wealth administration, which usually depends on charges based mostly on property below administration which were climbing together with rising markets.

Shares of the financial institution have dropped 4.2% this 12 months, underperforming the 8.6% acquire of the KBW Financial institution Index.

JPMorgan and Citigroup every reported the smallest earnings beats within the final seven quarters, and Goldman Sachs missed estimates for fourth quarter revenue due to elevated bills. Wells Fargo has been the only real shiny spot up to now in financial institution earnings after it gave targets for larger curiosity revenue and decrease bills.  

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