Morgan Stanley's Earnings Rise as Wealth Management Grows
October 17 2017 - 7:30AM
Dow Jones News
By Liz Hoffman
Morgan Stanley said its third-quarter profit rose to $1.78
billion as the firm's giant wealth-management business continues to
churn out reliable profits.
The Wall Street firm reported earnings of 93 cents a share
versus analyst expectations of 81 cents a share. Revenue of $9.2
billion was up from $8.91 billion a year ago and beat analyst
expectations of $9.02 billion.
Rivals including J.P. Morgan Chase & Co. and Citigroup Inc.
last week reported profit increases powered by commercial lending
and credit cards. Morgan Stanley instead leans on its wealth
management division, which oversees $2.2 trillion for some 3.5
million American households, to steady its earnings.
The smallest of Wall Street's big six banks, Morgan Stanley is
in the late innings of a multiyear transformation under Chief
Executive James Gorman, who has steered it away from lumpy,
error-prone trading and toward steadier advisory and
asset-management businesses.
Morgan Stanley's return on equity, a key measure of how
profitably it invests shareholders' money, stood at 9.6% in the
quarter. Mr. Gorman has targeted a minimum of 9% by the end of the
year.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
October 17, 2017 07:15 ET (11:15 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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