Morgan Stanley followed its banking peers and released its Q3 earnings report. The figures took Wall Street by surprise.
The bank’s profit jumped 25% from last year’s figures to $2.72 billion, or $1.66 per share. The market was expecting $1.28 a share.
Morgan Stanley’s revenue came in one billion above the estimates at $11.7 billion. Compared to last year's figures, the actual numbers are 16% higher. The wealth and investment management divisions each produced $200 more million than forecasted.
Since the beginning of the year, the bank has made several acquisitions that expanded the investment management segment. In February, the discount brokerage E-Trade was purchased for $13 billion. Last week, another American investment management company - Eaton Vance – was bought for $7 billion.
"We delivered strong quarterly earnings as markets remained active through the summer months, and our balanced business model continued to deliver consistent high returns," stated CEO James Gorman.
Following the announcement, Morgan Stanley's stock price went up 1.3%.
Read here about how the other American banks have performed in Q3!
Sources: cnbc.com, investing.com