BoA and Morgan Stanley Surprised with Q3 Figures.

Bank of America (BoA) and Morgan Stanley Announce Q3 Financial Results

The American multinational investment bank Bank of America (BoA) and Morgan Stanley have released their financial reports for the third quarter of 2023. Both banks managed to exceed investor expectations with their performances.

BoA's Striking Financials

BoA reported a 43% increase in investment banking revenues for Q3, reaching $2.05 billion compared to the previous year.

Analysts had estimated that these revenues would reach $1.65 billion. Advisory revenues increased by 51% to $583 million, while equity issuance revenues rose 34% to $362 million. Revenue from debt securities was determined to be $1.11 billion, with all three figures exceeding expectations.

Furthermore, the FICC trading revenue, calculated from trading in bonds, currencies, and commodities, was $3.08 billion, while equity trading revenue stood at $2.27 billion. The total trading revenue reached $5.35 billion, surpassing market estimates.

BoA's net interest income increased by 9.1% year-over-year to $15.2 billion, while analysts had forecasted a 7.6% increase.

The bank's net profit also drew attention, rising 23% year-over-year to $8.47 billion.

BoA's Q3 adjusted earnings per share were set at $1.06, while the expected value was $0.95.

Strong Performance from Morgan Stanley

Morgan Stanley reported a net income of $18.22 billion for Q3, while market expectations were at $16.64 billion.

The bank's asset management revenue was $8.23 billion, and its equity trading revenue was $4.12 billion. The FICC trading revenue was $2.17 billion. All three figures surpassed analyst expectations.

However, advisory revenues fell short of expectations at $684 million, while equity issuance revenue was $652 million and bond issuance revenue was $722 million, surprising the markets.

Morgan Stanley's net profit increased from $3.2 billion last year to $4.6 billion this year. Q3 adjusted earnings per share were reported at $2.80, while expectations were at $2.11. Last year, earnings per share were $1.88.