Morgan Stanley’s third-quarter results came in ahead of estimates on Wednesday, and its advisors—though down 832 from last year—continue to boost assets and sales.
The company said its third-quarter loss from continuing operations was $1 billion, or $0.55 per diluted share, compared with income of $2.2 billion, or $1.14 per diluted share, for the same period a year ago.
The company also reported negative revenue of $2.3 billion vs. positive revenue of $3.4 billion a year ago due to changes in Morgan Stanley’s debt-related credit spreads and other credit factors, such as the now mandatory debt valuation adjustment (DVA).
Excluding the adjustment, net revenues for the current quarter were $7.6 billion compared with $6.4 billion a year ago and income from continuing operations applicable to Morgan Stanley (MS) was $561 million, or $0.28 per diluted share, compared with income of $64 million, or $0.02 a year ago—topping estimates of $0.24 per share for the quarter.
“Our third-quarter results show a balanced, strategically focused franchise that has attained stronger revenues and executed on key goals,” said CEO James Gorman in a press release. “The rebound in fixed income and commodities sales and trading indicates that clients have re-engaged after the uncertainty of the rating review in the previous quarter.”
As for the results of its advisors, “We are beginning to unlock the full potential of the Global Wealth Management franchise, having increased our ownership of, and agreed on a purchase price for the rest of, Morgan Stanley Wealth Management.” Gorman said. “I am confident in our potential to enhance profitability and increase value for our shareholders in the quarters ahead.”
The number of financial advisors stood at 16,829—down 1% from 16,934 in the second quarter and 5% from 17,661 a year ago.