Morgan Stanley ( MS ) significantly exceeded profit expectations in the first quarter on strong investment banking, wealth management, and trading revenue.

The financial firm posted earnings per share (EPS ) of $2.02, well above estimates. Revenue rose 4% to $15.14 billion, also above forecasts.

Investment banking revenue gained 16% to $1.45 billion, boosted by a 113% jump in equity underwriting because of increased demand for initial public offerings (IPOs) and follow-ons. Revenue from wealth management ($6.88 billion) and trading ($4.85 billion) rose 5% and 8%, respectively. Assets under management (AUM) added $143 billion to $1.51 trillion.

Morgan Stanley noted its return on average tangible common shareholder equity (ROTCE) was 19.7%, up from 16.9% a year earlier.

Chief Executive Officer (CEO ) Ted Pick, who took over on Jan. 1, said the bank’s “Integrated Firm model is delivering durable results.”

While the news lifted Morgan Stanley shares nearly 4% shortly before the opening bell Tuesday, they were down 7.4% thus far in 2024 through Monday’s closing level of $86.99.