The Wall Street behemoth reported third quarter profit of $2.7 billion, or $1.66 a share, on $11.7 billion in revenue.
"We delivered strong quarterly earnings as markets remained active through the summer months, and our balanced business model continued to deliver consistent, high returns".
The bank's wealth management arm also turned in a solid quarter with a 7% jump in revenue to $4.66bn.
"Big investment banks are the easiest financial stocks to own because they have comparatively small loan portfolios (which are the biggest risk) but have upside earnings leverage to the now active capital markets".
As Gorman mentioned in his note Thursday morning, he has spent more than $20 billion to bulk up that business through his recent acquisition of E*Trade and his recently announced purchase of bond trading giant Eaton Vance.
The third quarter also continued a stark contrast between how the largest USA banks are seeing big gains in their capital markets businesses even as the broader economy struggles to recover.
Morgan Stanley has nearly negligible exposure to consumer banking.
The company's shares have fallen less than one per cent since the start of the year, the best performance among the top six banks. Earnings per share rose to $1.66, compared to $1.27 a year ago.
Net income applicable to common shareholders rose to $2.60 billion in the quarter ended September 30, from $2.06 billion a year ago. Analysts had expected profit of US$1.28 per share.
Revenue from Morgan Stanley's institutional securities division, which is the bank's largest breadwinner and houses its investment banking and trading businesses, rose 21% to US$6.06 billion. Equities trading revenue rose to US$2.26 billion, surpassing the US$2.2 billion average estimate. The bank had a key role on the direct listing of secretive big-data firm Palantir Technologies Inc. - a process that was beset by some opening-day technical hiccups.
Bank of America, in contrast, saw its VAR edge higher over Q3, by 5% to $22 million. Visit MarketWatch.com for more information on this news. The results included a one-time tax benefit of $113 million.
Buying and selling income performed an enormous function in Morgan Stanley's rising income by 25 % within the quarter regardless of the financial influence of the coronavirus.