The trading season continues on Wall Street quarterly in today's session everyone's eyes are on two heavyweights of the caliber of Morgan Stanley and Bank of America, which in the morning, with the stock market still closed, published the numbers for the three months from January to March.
Morgan Stanley's quarterly
Morgan Stanley stock began trading with a rise of 3,4% to $84,96 per share after beating analysts' estimates in the first quarter net income up 14,5% to 3,4 billion dollars from 3 billion dollars in 2023). Earnings per share were instead equal to 2,02 dollars against 1,70 dollars a year ago, against market expectations of 1,66 dollars.
Positive numbers achieved above all thanks to the recovery ofinvestment banking that made up for a two-year slump, when big businesses issued near-record levels of debt and equity capital markets became more active.
Revenues are also growing, which rose to 15,1 billion, compared to 14,5 billion in the same period last year and the 14,41 of the estimates. The quarter was Morgan Stanley's first with Ted Pick at the helm, who in a statement commented: “Thanks to strong growth in net new assets, the firm reached $7.000 trillion in client assets across the Wealth and Investment Management. Institutional Securities also reported strong growth in markets and underwriting activities. Morgan Stanley's integrated model is delivering lasting results."
Bank of America's quarterly
Chiaroscuro quarterly for Bank of America (-0,5%) which closed the first quarter with falling profits, but with the adjusted figure above forecasts, and falling revenues, but above expectations, with an increase in asset management and investment commissions banking, as well as trading revenues.
In detail, from January to March Bofa recorded a profit of $6,7 billion, $0,76 per share, down 18,2% from $8,2 billion, $0,94 per share, in the same period last year. Adjusted profit instead stood at 7,2 billion, 0,83 dollars per share, above the 0,76 dollars expected by analysts. Revenues fell by 2% to 25,8 billion compared to expectations of 25,46 billion.
Provisions against credit-related losses totaled $1,3 billion (up from $1,1 billion in the fourth quarter and $931 million in the first quarter of 2023).
“We had a solid quarter, thanks to the good performance of our businesses and the increase in the number of customers. We arrived at 36,9 million current accounts, growing net for 21 consecutive quarters,” commented CEO Brian Moynihan, noting that “wealth management has generated record revenues and investment banking has seen a recovery. Bank of America's sales and trading activities continued strong momentum into 2023, posting the best first quarter in more than a decade."
