US investment bank Morgan Stanley increased its third-quarter net profit by 32 percent year-on-year to USD 3.2 billion. The bank said in its earnings report today. Net profit per share was USD 1.88. Before the start of today’s trading, the bank’s shares were up more than three percent.
Net asset inflows helped
Total client assets in wealth and investment management exceeded $7.5 trillion, according to bank chief Ted Pick. “This was driven by rising equity markets and net asset inflows. Our business model is delivering high returns while raising capital, which has resulted in a return on equity of 18.2 percent for the first three quarters of this year, ” Pick said.
Revenues from wealth management, a key area of the bank’s business, came in at $7.27 billion in the quarter compared with $6.4 billion in the same period last year, according to Reuters. That represents an increase of 13.6 percent.
Comparing financial companies
Global investment banking revenue rose 21 percent in the first nine months of the year, according to Dealogic data. Of that, the most was in North America, where it was up 31 percent.
Net income at financial services company Bank of America, the second-largest U.S. bank by assets under management, fell 11.6 percent to $6.9 billion last quarter. Profit at Citigroup, the third-largest US bank, fell nine per cent to US$3.2 billion in the July-September period. By contrast, profits at Goldman Sachs, the fifth-largest US financial institution, rose 45 per cent to USD 2.99 billion.
Source – Czech Press Office
