00:00It is another monster quarter for another bank when it comes to equity trading.
00:04This is a huge number for Morgan Stanley.
00:06The estimate was at $4.78 billion.
00:09It comes in at $5.15 billion.
00:13Just to put it in context, they are just inches away from Goldman Sachs' equity trading business,
00:18which came in at $5.33 billion, which set a new high watermark for the entirety of Wall Street.
00:25So Morgan Stanley just behind them.
00:28When it comes to their FIC trading, also a beat, which, again, Goldman Sachs was unable to do this time
00:32around.
00:33$3.36 billion is where they stand for FIC trading.
00:36The estimate was for just under $3 billion.
00:38Net interest income, that's a slight beat as well.
00:41And their investment bank, that also beating with the return of M&A in the first quarter.
00:46And then there's the crown jewel of Morgan Stanley, and that is their wealth management business.
00:51That net revenue also coming in at a beat, $8.5 billion.
00:54The estimate was for just over $8.4 billion.
00:59So clearly, there's still lots of appetite among high net worth individuals and wealth clients to invest in these volatile
01:05times.
01:06Just a few sore notes, and maybe why you're not seeing shares up as much as others.
01:11Their compensation expenses were higher, $8.5 billion.
01:14That was higher than expected.
01:16The bank just noting that they had a lot of bonuses to pay out, and that led into those higher
01:20compensation expenses.
01:21The provisions for credit losses, this might get a few eyeballs.
01:25That's higher than expected, $98 million.
01:28The expectation was for $80 million.
01:30And again, their non-interest expenses, that also comes in a little bit higher.
01:34So higher credit provisions, higher expenses, but everything else, very strong beats, John.
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