Thanks to added client activity and a high demand equity market, a Wall Street bank’s trading, investment banking and wealth management businesses, Morgan Stanley, reported a strong 87 percent increase in third-quarter profits.
Its long-term and traditional banking operation based on investment banking proved that it can still have a great effect on it the bank’s earnings just as the results have shown.
However, it should be noted that despite the great results in profits, Morgan Stanley has a decrease. The financial institution’s adjusted return-on-equity dropped to 9 percent, which by Chief Executive James Gorman’s standards is below both the 10 percent he wants to achieve as well the second quarter return of 10.7 percent
In a conference call with analysts, Gorman stated that beyond their stated plans, the bank is trying to find ways to boost revenue and return-on-equity.
On the other hand, the chief financial officer of Morgan Stanley, Ruth Porat has stated that choppy markets and “structural headwinds” are decreasing revenue.
All in all, the Wall Street bank’s profit, excluding adjustments surpassed the average estimate of $8.17 billion and increased to 7 percent to $8.69 billion.