Morgan Stanley Beats Estimates as Investment Banking Gains

Core Insights - Morgan Stanley's first-quarter profit significantly exceeded expectations due to strong performance in investment banking, wealth management, and trading [1][2] - The firm reported earnings per share (EPS) of $2.02, with revenue increasing by 4% to $15.14 billion, surpassing forecasts [1] - Investment banking revenue rose by 16% to $1.45 billion, driven by a 113% increase in equity underwriting linked to heightened IPO activity [1] - Wealth management revenue reached $6.88 billion, while trading revenue grew by 8% to $4.85 billion [1] - Assets under management (AUM) increased by $143 billion, totaling $1.51 trillion [1] Financial Metrics - Return on average tangible common shareholder equity (ROTCE) improved to 19.7%, up from 16.9% a year earlier [2] - The Integrated Firm model is credited for delivering consistent results, as stated by CEO Ted Pick [2] Market Reaction - Following the earnings announcement, Morgan Stanley shares rose nearly 4% before the market opened, although they were down 7.4% year-to-date as of the previous closing [2]