Core Insights - Global dealmaking activity is increasing, benefiting major investment banks like Goldman Sachs (GS) and Morgan Stanley (MS), raising the question of which stock has more upside potential [1] Strategic Shifts - Goldman Sachs is focusing on its core strengths in investment banking and trading while reducing its consumer banking presence, including divesting its Polish asset management firm and selling various consumer finance units [2][3] - Morgan Stanley is decreasing its reliance on capital markets for income by expanding its wealth and asset management operations through strategic acquisitions, which has diversified its revenue streams [4] Financial Performance - Both firms faced challenges in 2022 and 2023 due to a slowdown in deal activity, but 2024 showed a recovery with increased investment banking revenues [5] - Goldman Sachs reported investment banking fees of $6.8 billion, a 19% year-over-year increase in the first nine months of 2025, while Morgan Stanley's investment banking fees grew 14% in the same period [6][7] Capital Return Strategies - Both banks passed the Federal Reserve's 2025 stress test, allowing them to return excess capital to shareholders through dividends and share repurchases [10] - Morgan Stanley raised its quarterly dividend by 8% to $1.00 per share, while Goldman increased its dividend by 33% to $4 per share, with respective annualized growth rates of 20.35% and 21.85% [11] Stock Performance and Valuation - Over the past three months, Goldman shares increased by 7.6%, while Morgan Stanley shares rose by 11.4%, outperforming the Zacks Investment Bank industry, which was up 3% [14] - Goldman has a trailing 12-month price-to-earnings (P/E) ratio of 14.78X, compared to Morgan Stanley's 16.11X, indicating a valuation advantage for Goldman [15] Earnings Estimates - The Zacks Consensus Estimate for Goldman's 2025 and 2026 earnings suggests year-over-year increases of 20.6% and 12.2%, respectively, while Morgan Stanley's estimates imply increases of 22.7% and 5.8% [15][21] Final Analysis - Morgan Stanley is positioned for more attractive upside due to its strategic focus, earnings growth trajectory, and shareholder-friendly practices, while Goldman Sachs is more sensitive to capital market cycles [22][23]

Key Takeaways MS stock is up 31.6% YTD, helped by a rebound in global M&A activity after earlier lows.The firm is boosting wealth and asset management businesses, supported by major acquisitions and growth.MS benefits from strong Asia revenues, solid liquidity and active capital distribution plans.Morgan Stanley (MS) shares have surged 31.6% this year, outperforming the industry, the Zacks Finance sector and the S&P 500. While it fared better than its close peer, JPMorgan (JPM) , it lagged Goldman Sachs (GS ...

Key Takeaways Manulife posted Q3 core EPS of $0.84, beating estimates by 13.5% and rising 15% year over year. Core earnings hit $1.4B, driven by growth in Global WAM, Asia, and Canada, plus an ECL provision release. NBV grew 6.3%, APE sales rose 8%, and core ROE expanded 150 bps to 18.1% for the quarter. Manulife Financial Corporation (MFC) delivered third-quarter 2025 core earnings of 84 cents per share, which beat the Zacks Consensus Estimate by 13.5%. The bottom line improved 15% year over year.Core earn ...

A Partnership for Now and the Future Fifth Third Investor Presentation October 6, 2025 ibdroot\projects\IBD-NY\burger2025\973442_1\Presentations\05. Investor Presentation\PPT\Express_2.0_v2 - From FITB_v01.pptx 1 Disclaimer FORWARD-LOOKING STATEMENTS This communication contains statements that constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and ...

Core Viewpoint - Fifth Third Bancorp has agreed to merge with Comerica Incorporated in an all-stock deal valued at $10.9 billion, which is expected to create the ninth-largest bank in the U.S. with approximately $288 billion in assets [1][3]. Group 1: Merger Details - Comerica shareholders will receive 1.8663 Fifth Third shares for each Comerica share, translating to an offer price of $82.88 per share, representing a 20% premium to Comerica's 10-day volume-weighted average [1]. - The merger will result in Fifth Third investors holding about 73% of the combined entity, while Comerica shareholders will own roughly 27% [3]. - The transaction is anticipated to close by the end of the first quarter of 2026, subject to shareholder approvals and regulatory reviews [2]. Group 2: Market Position and Growth - The combined entity will operate in 17 of the 20 fastest-growing U.S. markets, enhancing its presence in key regions such as the Southeast, Texas, and California, while maintaining leadership in the Midwest [2]. - The merger is expected to be immediately accretive for shareholders, indicating potential for enhanced shareholder value [3]. Group 3: Strategic Benefits - The merger will create two recurring, high-return fee segments, Commercial Payments and Wealth and Asset Management, each valued at $1 billion, which will diversify earnings and support growth initiatives [4]. - Tim Spence, Chairman, CEO, and President of Fifth Third Bank, emphasized that the merger is a natural fit due to Comerica's strong middle market franchise and complementary footprint, positioning the new entity for long-term value delivery [5].