The US earnings season continued with third-quarter results from major financial institutions. Morgan Stanley reported profits exceeding expectations, supported by strong performance in equity trading revenues, while BlackRock's net profit also increased compared to the same period last year. At Bank of America, however, legal provisions set aside put pressure on profits.
Morgan Stanley's third-quarter net profit was 4.91 billion dollars. The bank reported earnings of 3.03 dollars per share, surpassing market expectations of 2.92 dollars. The institution's equity trading revenues rose by approximately 41 percent year-on-year to 5.8 billion dollars.
The activity in trading volumes during a period of continued market volatility, driven by the Fed's interest rate decisions and US-Iran tensions, was the standout factor in Morgan Stanley's results.
BlackRock, one of the world's largest asset management companies, also reported profit growth in the third quarter. The company's net profit rose to 1.66 billion dollars for the period ending September 30, with earnings per share reaching 10.57 dollars. In the same period last year, net profit was at the 1.32 billion dollar level.
The size of assets under management, a key determinant of BlackRock's revenue outlook, also showed an increase. The company's assets under management rose from 13.46 trillion dollars a year ago to 15.5 trillion dollars.
On the Bank of America side, a decline in profit drew attention. The second-largest bank in the US set aside 1.2 billion dollars to cover regulatory fines related to deficiencies in processes aimed at detecting potential money laundering and other illegal activities.
The bank reported a net profit of 6.9 billion dollars and earnings of 91 cents per share for the three-month period ending September 30. Bank of America's net profit had been 8.3 billion dollars in the same period last year.
Bank of America also experienced a decline in market trading revenues. Bond trading revenues fell by 17 percent to 2.55 billion dollars, while equity trading revenues dropped by 10 percent to 2.51 billion dollars.
News Source: 12punto
