The Strategist

Morgan Stanley reporting for Q3 exceeds analysts' forecasts


10/16/2020 - 07:15



Morgan Stanley achieved a 25% increase in net profit in the third quarter, according to the bank's financial report.



Alex Proimos
Alex Proimos
The profit amounted to $ 2.7 billion, or $ 1.66 per share, which is significantly better than analysts' forecasts, who had expected to see this figure at $ 1.28 per share.

The revenue of the American bank also grew up to $ 11.7 billion for the quarter, while analysts forecasted that the bank would receive income of $ 10.65 billion on average. After the announcement of the results, Morgan Stanley shares added more than 2% in price.

Three more large American banks - Goldman Sachs, Bank of America and Wells Fargo - presented their quarterly reports on Wednesday. Net income of Goldman Sachs almost doubled, to $ 3.6 billion, and also almost doubled the expectations of analysts - they predicted a profit of $ 1.9 billion.

Bank of America reported a 16% drop in earnings from the third quarter of last year to $ 4.9 billion, or 51 cents per share. Analysts polled by FactSet expected earnings of 49 cents per share. Wells Fargo's net income fell 56% to $ 2 billion, or 42 per share. This is worse than the forecasts of analysts polled by Refintiv: they expected 45 cents per share.

Earlier, reports for the third quarter were presented by two other American banks - JP Morgan and Citigroup, their results were better than expected.

source: reuters.com