Morgan Stanley beats estimates on record investment banking and asset management results

Finance

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James Gorman, chief executive officer of Morgan Stanley, speaks during a Bloomberg Television interview on day three of the World Economic Forum (WEF) in Davos, Switzerland, on Thursday, Jan. 24, 2019.
Simon Dawson | Bloomberg | Getty Images

Morgan Stanley is set to report third-quarter earnings before the opening bell on Thursday.

Here’s what Wall Street expects:

Earnings: $1.68 a share, 1.5% higher than a year earlier, according to Refinitiv

Revenue: $14 billion, 20% higher than a year earlier

Wealth management: $6.18 billion, according to StreetAccount

Trading: Equities $2.32 billion, Fixed Income $1.53 billion

Investment Banking: $2.17 billion

Morgan Stanley is well positioned for the moment.

While rival banks have reported a slowdown in third-quarter fixed income trading revenue, Morgan Stanley’s strength has traditionally been in its equities franchise, the biggest in the world.

Another area that has flourished is investment banking, propelled by robust mergers and IPO activity, and Morgan Stanley is a top player there as well. Rival advisor JPMorgan Chase posted record investment banking fees in the third quarter.

Finally, CEO James Gorman has fashioned his bank into a top money management player through a series of savvy acquisitions, and those businesses should benefit from high stock values in the quarter.

Shares of the bank have climbed 44% this year, exceeding the 36% rise of the KBW Bank Index.

JPMorgan topped expectations Wednesday, helped by a $1.5 billion boost from better-than-expected loan losses.

This story is developing. Please check back for updates.

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