Given what's been observed out of the other big banks, Morgan Stanley's (NYSE:MS) easy earnings beat this morning should come as no surprise, and the only question now will be how the stock reacts today given that solid results were likely already priced in.
Turning to the numbers, net income of $1.6B or $0.81 per share compared to $1B and $0.48 a year ago, or $740M and $0.34, excluding DVA.
Compensation rose alongside revenue - $4.1B in Q3 vs. $3.4B in Q3 one year ago. Non-comp expenses fell to $2.4B from $2.9B thanks to lower litigation costs, and execution on expense management initiatives.
Annualized ROE in Q3 clocked in at 8.7%, with CET1 ratio of 15.9%.
Institutional Securities pretax income of $1.4B more than doubled from a year ago, with fixed income revenue of $1.5B up from $583M. Equity revenue edged higher to $1.9B, and advisory revenue dipped to $504M from $557M.
Wealth Management pretax income of $901M vs. $824M a year ago.
Previously: Morgan Stanley beats by $0.18, beats on revenue (Oct. 19)
MS initially gained 2% on the earnings beat news, but is up just 0.1% premarket at the moment.