Morgan Stanley (NYSE:MS) stock fell 1.28% (As on April 11, 11:22:14 AM UTC-4, Source: Google Finance) after the company reported first-quarter results that topped estimates as stock trading revenue surged 45% amid rising global volatility. The company said earnings rose 26% to $4.32 billion. Equity trading was the standout this quarter, as revenue jumped 45% to $4.13 billion, about $840 million more than the StreetAccount estimate. Fixed income trading rose 5% to $2.6 billion, essentially matching the StreetAccount estimate. Investment banking increased 8% to $1.56 billion, just under the $1.61 billion estimate. Wealth management revenue jumped 6% to $7.33 billion, matching the estimate. Net income applicable to Morgan Stanley was $4.3 billion compared with $3.4 billion, for the same period a year ago. During the quarter, the Firm accreted $1.9 billion of Common Equity Tier 1 capital and ended the quarter with a Standardized Common Equity Tier 1 capital ratio of 15.3%. The Firm delivered ROTCE of 23.0% during the first quarter. The Firm expense efficiency ratio was 68% for the first quarter. Expenses for the quarter included $144 million of severance costs related to a March employee action across our business segments.
Moreover, the bank noted strong performance across its global franchise, particularly in Asia and services for hedge funds, fuelled by increased client activity in a volatile trading environment. The bank’s results beat analyst expectations, powered by a sharp rise in equity trading revenue amid heightened market volatility. Other businesses delivered in line with expectations. Fixed income trading rose 5% to $2.6 billion, while investment banking revenue increased 8% to $1.56 billion, slightly below the $1.61-billion forecast. Wealth management revenue rose 6% to $7.33 billion, matching projections, supported by elevated stock market valuations that boosted fee income.
MS in the first quarter of FY25 has reported the adjusted earnings per share of $2.60, beating the analysts’ estimates for the adjusted earnings per share of $2.20, according to LSEG estimate. The company had reported the adjusted revenue growth of 17 percent to $17.74 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $16.58 billion.
Additionally, the company repurchased $1.0 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program. The company declared a $0.925 quarterly dividend per share, payable on May 15, 2025 to common shareholders of record on April 30, 2025.