Morgan Stanley (NYSE:MS) reported a significant increase in its first-quarter earnings and revenue, outperforming analyst forecasts, which led to a 3% rise in its shares intra-day today. The financial services firm posted net revenues of $15.1 billion for the quarter, marking a 4.1% increase from $14.5 billion in the same period the previous year. The adjusted earnings per share (EPS) was $2.02, well above the analyst prediction of $1.67.
Ted Pick, the Chief Executive Officer, attributed the firm’s strong performance to the substantial growth in client assets across Wealth and Investment Management, which now stand at $7 trillion, and robust activities in Institutional Securities, especially in equity and underwriting.
Institutional Securities reported net revenues of $7.0 billion, up from $6.8 billion year-over-year, with pre-tax income increasing to $2.4 billion from $1.9 billion. Wealth Management saw its net revenues rise to $6.9 billion from $6.6 billion the previous year, with a pre-tax margin of 26.3%. Furthermore, Investment Management’s net revenues grew to $1.4 billion from $1.3 billion year-over-year, with pre-tax income climbing to $241 million from $166 million.
Morgan Stanley also reported an expense efficiency ratio of 71%, demonstrating operating leverage in an improving market environment, while the standardized Common Equity Tier 1 capital ratio stood at 15.1%.