Morgan Stanley posts massive third-quarter earnings beat

Core Insights - Morgan Stanley reported record net revenues for Q3, achieving a significant revenue beat of 18.2 billion compared to estimates of 16.69 billion, marking the largest revenue beat since Q1 2021 [1][2] - The company also exceeded bottom-line expectations, with earnings coming in at approximately 70 cents higher than consensus [2] - All three major divisions of Morgan Stanley surpassed expectations, with Institutional Securities showing a notable beat of over 1 billion compared to market expectations [2] Division Performance - Investment banking revenue increased by 44%, reaching 2.1 billion, with advisory, equity underwriting, and fixed income underwriting all beating expectations and showing substantial year-over-year growth [2][3] - The equities trading division also performed well, with a 35% increase compared to the previous year [3] - Global Wealth Management reported a beat, with client asset flows of 41.9 billion and net new assets of 81 billion, both figures up year-over-year [3] Financial Metrics - Compensation and non-compensation expenses were slightly higher than expected, but the company reported a return on tangible common equity (ROTC) of 23.5%, the highest among its peer group [4] - Following the positive results, shares of Morgan Stanley rose by 2.3% [4]