Morgan Stanley posts profit on surging equity trading

Fri Jan 18, 2013 6:20pm IST

The exterior of the world headquarters for Morgan Stanley & Co. Incorporated is seen in New York, May 19, 2008. REUTERS/Lucas Jackson/Files

The exterior of the world headquarters for Morgan Stanley & Co. Incorporated is seen in New York, May 19, 2008.

Credit: Reuters/Lucas Jackson/Files

Related Topics

Stocks

   

REUTERS - Morgan Stanley (MS.N) reported a fourth-quarter profit on a surge in equity sales and trading and strong margins at its wealth management business, sending its shares up 7 percent before the bell.

The investment bank reported income from continuing operations of $573 million, or 28 cents per share, compared with a loss of $222 million, or 13 cents per share, a year earlier.

Revenue from sales and trading rose 43 percent to nearly $3 billion. Wealth management business grew 8 percent to $3.5 billion.

"Our firm is now poised to reach the returns of which it is capable on behalf of our shareholders," Chief Executive James Gorman said in a statement.

Compensation expense, typically the biggest cost for Wall Street firms, fell 5 percent to $3.6 billion in the fourth quarter from a year earlier.

Rival Goldman Sachs Inc said on Wednesday it cut compensation costs 11 percent in the fourth quarter, helping boost return to shareholders.

(Reporting by Anil D'Silva; Editing by Supriya Kurane)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

DIPLOMACY

REUTERS SHOWCASE

Moody's on Inflation

Moody's on Inflation

Persistent inflation hurting India's sovereign ratings - Moody's  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

Asian Market

Asian Market

Shares edge up on steady Wall Street  Full Article 

Chance For Reform

Chance For Reform

India's coal crunch - a chance to revamp, reallocate and revive.  Full Article 

Road to IPO

Road to IPO

Mega-IPO to rekindle the 'bromance' behind Alibaba's rise  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage