On October 18, 2023, Morgan Stanley (MS, Financial) released its third-quarter earnings report for the period ended September 30, 2023. Despite a mixed market environment, the firm reported solid results, with net revenues of $13.3 billion, up from $13.0 billion a year ago. Net income applicable to MS was $2.4 billion, or $1.38 per diluted share, compared to $2.6 billion, or $1.47 per diluted share, for the same period a year ago.
Financial Highlights
James P. Gorman, Chairman and Chief Executive Officer, commented on the firm's performance, stating,
While the market environment remained mixed this quarter, the Firm delivered solid results with an ROTCE of 13.5%. Our Equity and Fixed Income businesses navigated markets well, and both Wealth and Investment Management produced higher revenues and profits year-over-year. We completed the integration of E*TRADE in the quarter, further executing on our strategy of building revenue synergies across channels and attracting clients to our best-in-class advice offering. Our ability to gather assets, together with our strong capital position and leading client franchises, position us to deliver continued growth and strong shareholder returns going forward."
Performance of Business Segments
Institutional Securities reported net revenues of $5.7 billion, reflecting solid results in Equity and Fixed Income and muted completed activity in Investment Banking. Wealth Management delivered a pre-tax margin of 26.7% with net revenues of $6.4 billion, reflecting increased asset management revenues on higher average asset levels compared to a year ago. Investment Management net revenues of $1.3 billion increased compared to a year ago on higher asset management revenues and AUM of $1.4 trillion.
Looking Ahead
Morgan Stanley (MS, Financial) remains optimistic about its future performance. The successful integration of E*TRADE and the firm's ability to gather assets, coupled with its strong capital position and leading client franchises, positions it to deliver continued growth and strong shareholder returns going forward.
About Morgan Stanley
Morgan Stanley (MS, Financial) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management, and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions, and individuals.
