Morgan Stanley rose 13% in 5 days, trading volume rises 45% in the first quarter amid the rebalancing of portfolio | Einsmark news

Shares of Wall Street Investment Bank, Major Morgan Stanley, rose 13 percent in the last five sessions over a strong sentiment of its quarterly earnings. Morgan Stanley beat the first quarter profit estimates on Friday, aided by record stock trading and strong wealth management results, while CEO expressed more optimism about trade than its peers. The Investment Bank reported an income from record shares, with a jump of 45% a year before, reflecting the increase in businesses and regions, especially in Asia, with its biggest profits in prime brokers and derivatives. As uncertainty over US rates has made the markets disappear, some transactions in Morgan Stanley’s transaction pipeline were interrupted, CEO Ted Pick told analysts. Still, companies did not give it up, he said. “We are still, I will call it” cautiously optimistic “that we cannot go into a recession,” Pick said. CFO Sharon Yeshaya added that the bank’s pipeline of potential transactions remains strong and not reduced. Corporations can look at possible tax cuts and deregulation and decide to continue transactions, even as volatility rises, Pick said. The bank earns $ 4.3 billion, or $ 2.60 a share, in the three months ended 31 March. It compares a year ago with a profit of $ 3.4 billion, or $ 2.02 per share. Analysts expected earnings per share of $ 2.20, according to estimates compiled by Lseg. Morgan Stanley’s investment banking revenue increased by 8% compared to a year earlier, strengthened by higher advice and fixed income underwriting income. Morgan Stanley’s wealth management revenue – an important focus area – amounts to $ 7.3 billion, compared to $ 6.9 billion a year ago. The revenue of stock trading has risen when investors rebalanced their portfolios, which increased the volumes, mainly in technology and industrial shares. The bank advised over several major transactions during the quarter, including Walgreens’s $ 24 billion taking agreement with Sycamore Partners. It also served as lead author for AI cloud firm Coreweave’s US initial public offer of $ 1.5 billion. Morgan Stanley’s institutional security industry, which houses investment banking and trade, reported an income of $ 9 billion compared to $ 7 billion a year earlier. In the first quarter of the loan, Morgan Stanley discussed a profit from the sale that financed the acquisition of the Social Media Platform X of 2022, according to two sources with knowledge of the matter. The bank led the syndicate of lenders that included Bank of America, Barclays, BNP Paribas, Mufg, Mizuho and Societe Generals who kept the $ 13 billion loans on their balance sheets for more than two years. The profit was discussed as other revenue in the bank’s Institutional Security Division, which amounted to $ 692 million, doubled the $ 242 million revenue more than a year ago. First published: 12 Apr 2025, 05:51 PM IST