Morgan Stanley's profit beats with the strength of trading and stock underwriting

(Reuters) – Morgan Stanley (MS.Nposted Tuesday a quarterly earnings above expectations, driven by higher revenue from its stock trading and stock subscription activities.

Equity trading revenue increased 7% in a quarter of uncertain global financial markets as a result of the ongoing US-China tariff war.

Morgan Stanley's bond trading revenues increased 1%, outperforming its traditional competitor Goldman Sachs Group Inc. (GS.N) which recorded a 10% decrease in the company's revenues.

JPMorgan (JPM.N) – decreased by 10% in the third quarter.

Morgan Stanley's overall revenue grew by 7.3%, better than expected, thanks to a 62% increase in share subscription revenue.

President and CEO James Gorman has restored Morgan Stanley's health since taking office in 2010 when the bank was still in shock from the financial crisis.

Its mandate has been defined by reducing risk, by abandoning problematic companies and focusing on more stable companies that can generate reliable revenues.

However, some analysts question the bank's future growth strategy. Its shares fell by 17% this year, underperforming the .SPSY index of S & P Financial, the mediocre transactions also weighing on the stock. Shares were up 2.4% before the opening bell.

The bank's sales and transaction revenues, which represent its largest share, grew 7.5% and were better than those of JPMorgan Chase & Co (JPM.N) and Citigroup Inc (C.N).

Net income attributable to Morgan Stanley reached $ 2.11 billion, or $ 1.17 per share, in the third quarter ended September 30, compared to $ 1.78 billion, or 93 cents per share. year.

Analysts were expecting $ 1.01 per share, according to Refinitiv's I / B / E / S data.