Morgan Stanley Continues Its Solid Financial Results for Q3 2023

Morgan Stanley published its financial result for the third quarter ended September 30, 2023 (Q3 2023), seeing a slight yearly growth in net revenue for the period.

Financial Overview for Q3 2023:

• Net revenue totaled $13.27 billion for the quarter, increasing by 2.2% compared to $12.99 billion in Q3 2022 and decreasing by 1.4% compared to $13.46 billion in Q2 2023. Compared to data for the same period a year ago, net revenue of institutional securities dropped by 2.6% from $5.82 billion to $5.67 billion; net revenue of wealth management rose by 4.6% from $6.12 billion to $6.40 billion; net revenue of investment management rose by 14.5% from $1.17 billion to $1.34 billion.

• Pre-tax income was $3.15 billion during the three months, falling by 7.1% compared to $3.39 billion in the same period of last year.

• Net income applicable to the bank came in at $2.41 billion during the period, a decrease of 8.4% compared to $2.63 billion in Q3 of last year. Earnings per diluted shared was $1.38, 6.1% lower than $1.47 in Q3 2022.

• The Firm delivered ROTCE of 13.5% for Q3 2023, compared to 14.6% in Q3 2022.

James P. Gorman, Chairman and Chief Executive Officer of Morgan Stanley, said: "While the market environment remained mixed this quarter, the Firm delivered solid results with an ROTCE of 13.5%. Our Equity and Fixed Income businesses navigated markets well, and both Wealth and Investment Management produced higher revenues and profits year-over-year.

"We completed the integration of E*TRADE in the quarter, further executing on our strategy of building revenue synergies across channels and attracting clients to our best-in-class advice offering. Our ability to gather assets, together with our strong capital position and leading client franchises, position us to deliver continued growth and strong shareholder returns going forward."