Morgan Stanley (NYSE:MS) stock rose 0.30% (As on April 20, 11:41:27 AM UTC-4, Source: Google Finance) after the company topped estimates for first-quarter profit and revenue on better-than-expected trading results. The  expenses at the bank climbed 4% to $10.52 billion, mostly fueled by higher-than-expected compensation costs. Expenses came in $430 million higher than the StreetAccount estimate. Wealth management revenue climbed 11% from the year-earlier period to $6.56 billion, matching the StreetAccount estimate. The increase was fueled by a rise in net interest income amid higher rates and loan growth, which offset lower asset management revenues as markets declined. First-quarter trading revenue dipped from a year ago as Wall Street comes down from a Covid pandemic-era boom, but Morgan Stanley’s traders managed to top expectations by roughly $250 million. The bank’s fixed income traders produced $2.58 billion in revenue, exceeding the $2.33 billion StreetAccount estimate. Equities trading revenue of $2.73 billion edged out the $2.65 billion estimate. Investment banking revenue dropped 24% to $1.25 billion on fewer completed M&A deals and lower stock and debt issuance, edging out the $1.2 billion estimate. Finally, the bank’s smallest business, investment management, saw revenue drop 3% to $1.29 billion, just below the $1.34 billion estimate, as management fees decreased amid declining markets.

Moreover, Advisory revenues decreased from a year ago driven by fewer completed M&A transactions.  Equity underwriting revenues decreased from a year ago primarily driven by lower IPO volumes. Fixed income underwriting revenues decreased from a year ago primarily driven by lower non-investment grade loan issuances

MS in the first quarter of FY 23 has reported the adjusted earnings per share of $1.70, beating the analysts’ estimates for the adjusted earnings per share of $1.62, according to Refinitiv estimate. The company had reported 2 percent fall in the adjusted revenue to $14.52 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $13.92 billion.

Additionally, Standardized Common Equity Tier 1 capital ratio was 15.1%, 180 basis points above the aggregate standardized approach CET1 requirement inclusive of buffers. The Firm has repurchased $1.5 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program.  The company has declared a $0.775 quarterly dividend per share, payable on May 15, 2023 to common shareholders of record on May 1, 2023.