Bank of America and Morgan Stanley Post Another Strong Quarter

Important issue:

  • Bank US earnings per share was $ 0.85, up 66% year-over-year.
  • Morgan Stanley has exceeded expectations with M & A achieving record quarterly profits.

Bank of America: Net income for the third quarter was $ 7.7 billion and earnings per share was $ 0.85, above the estimated $ 0.71. Net interest income for the quarter increased 10% to $ 11.1 billion due to a significant increase in deposits. Banks The second Quarterly earnings missed the markHowever, third-quarter earnings recovered again, rising 12% to $ 22.8 billion, above an estimated $ 21.6 billion.Allowance for doubtful accounts added $ 624 million against the backdrop of the release of reserves to improve economic conditions

Non-interest income was also a key driver of third-quarter income, up 14% to $ 11.7 billion. This is due to record asset management fees, strong investment banking, and increased transaction returns. Q3 fFixed income revwas enues 5% decrease, NS Weak mortgage transaction environmentsand Interest rate products, While Stock turnoverenue Increased by 33% due to growth in client financing activities and stronger transaction performance When Increased client activity..

Bank of America shares have been trading in front of the market at $ 44.07, up 2.2% after the earnings announcement. Shares rose 83% year-on-year in response to a strong backlash from the pandemic’s lows, but below the all-time highs ($ 54.70) seen in the years before the 2008 financial crisis. increase. Whether buy or hold, short-term headwinds could cause stock trading to fall below recent highs until the last quarter of the year.

Bank of Americaevery day chart

Source: Refinitiv

Morgan Stanley: Net Revenue Third-quarter sales were $ 14.8 billion, up from $ 11.7 billion last year. Earnings were high in key sectors such as wealth management, investment banks and securities for institutional investors. Quarterly adjusted EPS was $ 2.04, compared to an estimated $ 1.69, and diluted earnings per share increased from $ 1.66 last year to $ 1,98. Banks benefited from global mergers and acquisitions through transactions Reach new highs in $ 1.52 trillion in the three months to September 27. this Represents Record high quarterly growth rate, soaring 38% year-on-year..

MS stocks are trading at $ 99.9, up 1.35% in front of the market, but still down 9% from the highs seen at the end of September. The momentum remains strong, but the recent recession remains on the uptrend line. This means that bullish support can begin to weaken in the short term. Consolidation could be seen near current levels with a slight bearish slope before stocks hit record highs.

Morgan Stanley Daily Chart

Revenue Season: Bank of America and Morgan Stanley Announce Another Strong Quarter

Source: Refinitiv

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— by market analyst Daniela Sabin Hathorn

Follow Daniela on Twitter @HathornSabin

Bank of America and Morgan Stanley Post Another Strong Quarter

Source link Bank of America and Morgan Stanley Post Another Strong Quarter

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