Morgan Stanley (MS) has reported strong first-quarter results due largely to a 45% increase in its revenue generated from stock trading.
The Wall Street investment bank took advantage of the stock market hitting multiple all-time highs in January and February of this year to boost its equity trading revenue.
As a result, Morgan Stanley reported first-quarter earnings per share (EPS) of $2.60 U.S. versus $2.20 U.S. that was the consensus estimate of analysts who track the bank’s progress.
Revenue in the January through March period totaled $17.74 billion U.S., which was ahead of the $16.58 billion U.S. expected on Wall Street.
In its earnings statement, Morgan Stanley said that its stock trading team has also taken advantage of the volatility in equity markets in recent weeks.
At the same time, the bank’s large wealth management business unit was helped by high stock market valuations in the first quarter, which boosts the management fees it collects.
Morgan Stanley is one of several Wall Street banks that has reported better-than-expected Q1 financial results due largely to strength in equity trading.
JPMorgan Chase (JPM) and Wells Fargo (WFC) have also reported strong quarterly financial results, citing strength in stock trading during the year’s first three months.
However, rising geopolitical tensions and trade tariffs are casting a cloud over Wall Street and its outlook for the remainder of 2025.
The stock of Morgan Stanley is down 15% so far this year and currently trading at $106.58 U.S. per share.