10:45 AM EDT, 10/15/2025 (MT Newswires) -- Morgan Stanley's ( MS ) third-quarter results topped market estimates as the lender recorded double-digit revenue gains in its investment banking and equity trading businesses.

The bank on Wednesday posted earnings of $2.80 for the September quarter, up from $1.88 a year earlier, well above the FactSet-polled consensus estimate of $2.10. Revenue climbed to $18.22 billion from $15.38 billion, ahead of the Street's view of $16.69 billion.

The stock rose 6.8% in Wednesday trade, taking its gain to about 32% so far this year.

Revenue in the institutional securities segment advanced to $8.52 billion from $6.82 billion in the prior-year period. Within the division, investment banking revenue jumped 44% to $2.11 billion, amid gains in merger and acquisition transactions and initial public offerings. Equity trading grew 35% to $4.12 billion due to robust client activity, the company said.

"A rebound in the investment banking environment reopened the door to strategic M&A and renewed financing activity," Chief Executive Ted Pick said during an earnings call, according to a FactSet transcript. "The equity underwriting result was also industry leading this quarter."

Morgan Stanley's ( MS ) results follow investment banking gains reported by JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), Goldman Sachs (GS) and Citigroup (C), all recording better-than-expected consolidated third-quarter results.

The wealth management business recorded revenue of $8.23 billion, rising from $7.27 billion a year ago.

Investment management revenue advanced 13% to $1.65 billion, buoyed by gains in asset management and related fees. Client assets across wealth and investment management reached $8.9 trillion, Pick said in the earnings release.

Overall, net interest income rose 13% year on year to $2.49 billion.

For the fourth quarter, Morgan Stanley ( MS ) expects to see a "modest sequential" gain in net interest income, Chief Financial Officer Sharon Yeshaya told analysts on the call. "Of course, the rate, environment, trajectory of loan growth and deposit mix will all come into play," she said.

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