Q1 snap: IB and Trading drive big beat
MS delivered a 16% beat thanks to strong revenue growth, particularly in Institutional Securities. As with peers, Equity trading was very strong, up 27% YoY, but FICC was also up 9% to $1.9bn driven by strength in FX and commodities. IB fees were 7% above consensus with DCM and Advisory revenues 13% ahead. The only slight disappointment was a 3% miss in Wealth Management revenues but this seems to be due to some investments-related losses, about which I'm sure we will hear more detail on the call. The efficiency ratio of 69% was 2pp below consensus. Overall, the quality seems very good and an ROE of 14.9% and an ROTE of 17.2% are excellent results.Morgan Stanley is a financial holding company. Through its subsidiaries and affiliates, the company advises, and originates, trades, manages and distributes capital for, governments, institutions and individuals. The company's segments are: Institutional Securities, which provides investment banking, sales and trading, lending and other services; Wealth Management, which provides brokerage and investment advisory services, financial and wealth planning services, stock plan administration services, annuity and insurance products, residential real estate loans and other lending products, banking, and retirement plan services; and Investment Management, which provides investment strategies and products.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.