Morgan Stanley delivered robust financial results in its third-quarter earnings report for 2024, significantly exceeding market expectations. The firm reported an adjusted earnings per share (EPS) of $1.88, surpassing analysts’ consensus estimate of $1.58. Net earnings jumped 33% year-over-year to $3.2 billion, while total revenue surged 15.9% to $15.38 billion.
Wealth Management Leads the Way
A standout performer was the Wealth Management division, which achieved record revenue of $7.27 billion, marking a 14% increase compared to the same period last year. Total assets under management across the firm’s Wealth and Investment Management segments reached an impressive $7.67 trillion, reflecting a 25% year-over-year growth.
The division also saw strong inflows, with net new assets of $63.9 billion for the quarter—a 76% jump from the previous quarter. These gains were attributed to advisor-led channels and workplace solutions, supported by buoyant equity markets.
Trading and Institutional Securities Boost Results
The Institutional Securities division also demonstrated solid momentum, benefiting from improved market conditions and active client engagement. Revenue from trading and underwriting activities contributed significantly to the overall performance.
Challenges and Forward Outlook
Despite these successes, Morgan Stanley experienced a slight dip in net interest income (NII), which fell to $1.77 billion due to lower average sweep deposits. However, this was counterbalanced by growth in asset management fee-based revenues, underscoring the firm’s resilience in navigating a challenging interest rate environment.
CEO Ted Pick highlighted the firm’s ability to leverage its integrated model, delivering strong results across its business lines. Looking ahead, Morgan Stanley remains optimistic about sustaining its growth trajectory, although much depends on the Federal Reserve’s monetary policy decisions in the coming months.