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Morgan Stanley earnings beat estimates, merger management profit hits record

Oct 14 (Reuters) – Morgan Stanley reported a higher-than-expected third-quarter profit on Thursday as it closed more corporate deals and generated a record $ 1.27 billion from its advisory services over the three months.

The Wall Street bank benefited from global mergers and acquisitions that reached a new record, with deals totaling $ 1.52 trillion announced in the three months ending September 27.

The figure represents growth of 38% year-on-year, above the levels of any recorded quarter, according to Refinitiv data.

Morgan Stanley ranks third on the global mergers and acquisitions list, which ranks financial services companies based on the amount of settlement commissions they generate, behind rivals Goldman Sachs Group Inc and JPMorgan Chase & Co.

Institutional securities, which house the sales and trade and investment banking units, the bank’s largest reporting lines, generated net profits of $ 7.5 billion, up 22% from a year earlier.

Revenue from its investment banking unit, which comprises the advisory, equity and fixed income underwriting businesses, was $ 2.85 billion, compared with $ 1.719 billion a year ago.

Commissions for share subscription amounted to $ 1.01 billion and the bank acted as an underwriter on some of the most anticipated stock debuts, including Salesforce rival Freshworks Inc, restaurant software maker Toast Inc and shoemaker On Holding AG. backed by Federer.

Net income applicable to common shareholders increased to $ 3.58 billion, or $ 1.98 per share, in the three months ended September 30, from $ 2.6 billion, or $ 1.66 per share, reported in the same period a year before.

Analysts had expected a profit of $ 1.68 per share, according to Refinitiv data.

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