Morgan Stanley profit beats estimates on dealmaking boost, CFO cites record pipeline

Core Insights - Morgan Stanley's profit exceeded market expectations in Q3, driven by a significant increase in dealmaking and record revenue [1][2] - The investment banking pipeline is at "all-time highs," with potential for breaking 2021 deal volume records next year [1][3] Financial Performance - The bank's profit surged to $4.6 billion, or $2.80 per share, surpassing expectations of $2.10 per share [7] - Total quarterly revenue reached a record $18.2 billion, exceeding expectations of $16.7 billion [7] - Investment banking revenue increased by 44% to $2.11 billion compared to the previous year [8] Wealth Management - Wealth management assets under management reached $8.9 trillion, approaching the goal of $10 trillion, with a pre-tax margin of 30.3% [2][6] - A strong wealth management business is expected to support ongoing investment banking activities [6] Market Conditions - Global mergers and acquisitions activity surpassed $3 trillion this year, fueled by a resilient U.S. economy and favorable market conditions [3] - The CFO noted improved GDP expectations and lower debt costs for companies, alongside a resumption of the Federal Reserve's rate-cutting cycle [4] Stock Performance - Morgan Stanley shares rose 4.1% in premarket trading and have gained 23.6% year-to-date [5]