Morgan Stanley Profit Rises
CBJ – Morgan Stanley has reported a much stronger-than-expected rise in quarterly profit, aided by higher revenue from trading bonds and equities.
Net income applicable to common shareholders rose to $2.31 billion, or $1.18 per share, in the first quarter ended March 31, from $1.45 billion, or 74 cents per share, a year earlier.
Excluding items, the Wall Street investment bank said it earned $1.14 per share.
Net revenue excluding items rose 10.3% to $9.78 billion, beating the average analyst estimate of $9.17 billion.
Adjusted revenue from equities sales and trading rose 33% to $2.27 billion, meaning that Morgan Stanley lost its lead in the business over Goldman Sachs Group, which reported revenue of $2.32 billion for the quarter.
Global stocks have generally performed strongly since the start of the year, with several indexes at or close to record highs as a number of central banks have eased monetary policy.
Revenue in the bank’s wealth management business rose 6.2% to $3.83 billion, accounting for 39% of total revenue.
Excluding special items, revenue from trading fixed-income securities, currencies and commodities (FICC) rose 15% in to $1.90 billion.