Morgan Stanley and Bank of America both reported record or near-record first-quarter results on Wednesday, capping a strong earnings week for major US banks.
Why it matters
The results signal that Wall Street’s trading and advisory businesses are thriving despite geopolitical uncertainty from the Iran conflict and trade tensions. All six major US banks have now beaten analyst expectations for the quarter.
Morgan Stanley
Morgan Stanley posted record quarterly revenue of $20.6 billion, up 16% from a year earlier. Net income rose 29% to $5.57 billion, or $3.43 per share, well above the $3.02 consensus estimate.
Equities trading hit a record $5.15 billion. Investment banking fees climbed 36% to $2.12 billion, fuelled by a surge in advisory work and debt issuance. Wealth management revenue rose 16% to a record $8.52 billion, with $118.4 billion in net new client assets.
Bank of America
Bank of America reported earnings per share of $1.11, its strongest figure in roughly two decades. Analysts had expected $1.01. Revenue reached $30.43 billion, a 7.2% increase from the prior year.
Equities trading revenue climbed 30%. Net interest income, the bank’s core earnings driver, rose 9% to $15.9 billion. The Global Markets segment posted net income of $2 billion with sales and trading revenue of $6.4 billion, up 13%.
The bigger picture
The first-quarter results from JPMorgan Chase, Wells Fargo, Citigroup, Goldman Sachs, Morgan Stanley, and Bank of America all showed year-over-year profit growth. Investors are betting that strong deal flow and AI-related investment will sustain momentum, even as the Iran conflict and energy price volatility cloud the outlook for the rest of the year.