Morgan Stanley's 4th-quarter earnings beat estimates as annual revenues hit record high despite economic gloom
Morgan Stanleybeat expectations as net income rose to $3.39 billion in the fourth quarter.
- The bank's trading section thrived as
marketsrecovered, helping annual revenues hit a record.
- Chief executive James Gorman said Morgan Stanley enters 2021 with "significant momentum".
Morgan Stanley's fourth-quarter earnings beat expectations as strong performances by its trading and investment arms pushed annual revenue to a record high.
The Wall Street lender brought in a profit of $3.39 billion in the fourth quarter, up 51% from a year earlier. Earnings per share rose to $1.81 in the final three months of the year, up from $1.30 in 2019 and beating expectations of $1.27.Revenues rose 26% year on year to $13.64 billion in the fourth quarter, the bank said, helping revenues for the year as a whole hit a record high of $48.2 billion. Morgan Stanley shares were up 1.96% in pre-market trading.
Here are the key numbers:
- Earnings per share: $1.81 versus $1.27 estimated
- Revenues: $13.64 billion versus $11.54 billion estimated
- Equities trading revenue: $2.5 billion versus $2.14 billion estimated
Yet the US's biggest lenders have bounced back remarkably quickly as monetary and fiscal stimulus has caused markets to surge to fresh highs.Michael Saylor has invested over $1 billion of MicroStrategy's funds in Bitcoin. The software CEO-turned Bitcoin whale explains why he is making such a massive bet on the digital asset.
Morgan Stanley's equities trading revenue jumped 30% year on year to $2.5 billion in the final three months of the year. Meanwhile investment banking revenues, which include advisory and underwriting, surged 46% to $2.3 billion.
"We enter 2021 with significant momentum, and I am very confident in our competitive position and our opportunities for continued growth," Gorman said in a statement released with the earnings.Morgan Stanley confirmed that it planned to buy back up to $10 billion of its own shares in 2021, after the Fed eased restrictions on repurchases.
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