(AOF) – The banking results season will have been more favorable this quarter for establishments most exposed to investment banking and market activities. 24 hours after Goldman Sachs, Morgan Stanley provided new proof and saw its stock rise by 3.39% to $84.94. Bank of America shares, however, fell 3.89% to $34.55 after revealing profits and interest income at half mast. American banks must better remunerate their deposits after the rate rise.
Between January and March, Morgan Stanley’s net income increased 14% to $3.46 billion, or $2.02 per share. It clearly exceeded the FactSet consensus of $1.65. Revenues rose 4% to $15.14 billion, also above expectations: $14.42 billion.
Morgan Stanley benefited from the good performance of its investment bank, whose revenues jumped 16% to $1.447 billion. They were particularly supported by its activities in the primary equity market and to a lesser extent in the bond sector.
Regarding market activities, stock brokerage – an area where it is one of the leaders on Wall Street – generated revenues of 2.84 billion, up 4%. Goldman Sachs has higher revenues: 3.311 billion. Revenues in FICC brokerage (bonds, foreign exchange, and commodities) fell 4% to $2.845 billion.
In wealth management, revenues increased by 5% to $6.88 billion for taxable profit up 6% to $1.8 billion. This division manages $5,495 billion in assets, up 21% year-on-year. It collected $94.9 billion in the quarter.
Bank of America’s first-quarter net income fell to $6.7 billion, or 76 cents per share, from $8.2 billion and 94 cents, respectively. Excluding one-off items, earnings per share came to 83 cents, beating the consensus of 77 cents.
Bank of America recorded a charge of $700 million in its accounts, which is intended to contribute to the bailout of the American agency guaranteeing bank deposits in the United States. The FDIC had to intervene after the bankruptcy of several regional banks in 2023.
Regarding net banking income, it fell by 5% to 25.8 billion dollars, where the market expected 25.61 billion dollars. Interest income fell 3% to $14 billion, hurt by the cost of deposits. Revenue at its investment bank jumped 35% to $1.6 billion.
© 2024 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
