BlackRock and Morgan Stanley post higher profits as Bank of America misses estimates

BlackRock assets under management

15.49 trillion US$

BlackRock's third-quarter profit rose to US$1.66 billion, from US$1.32 billion a year earlier, as the world's largest asset manager earned higher fees. Its assets under management reached US$15.49 trillion.

Bank of America's profit fell to US$6.9 billion and missed estimates, as it booked a US$1.2 billion charge tied to a penalty for failing to report over US$5 billion in suspicious activity to the U.S. government.

Morgan Stanley beat estimates with a profit of US$4.91 billion, as its equity trading revenue rose nearly 41 per cent to US$5.8 billion on volatile markets.

Why it matters

Treasury yields climbed to multi-decade highs in the quarter, weighing on bank stocks and slowing mergers and acquisitions.