April 19, 2017 / 11:06 AM / 3 months ago

Morgan Stanley's quarterly profit surges on trading gains

2 Min Read

April 19 (Reuters) - Morgan Stanley reported a 74 percent jump in quarterly profit on Wednesday, helped by a bump in trading gains as investors shuffled their portfolios following interest rate hikes by the Federal Reserve.

The bank's results stood in sharp contrast to those of chief rival Goldman Sachs, which reported a rare drop in trading revenue on Tuesday.

Earnings applicable to common shareholders rose to $1.84 billion in the three months ended March 31, from $1.06 billion a year earlier, while earnings per share rose to $1.00 from 55 cents.

Analysts on average had expected a profit of 89 cents per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if this was comparable to the reported figures.

Bond trading remained strong across Wall Street during the quarter, gaining from a shift to higher interest rates. Fed raised rates twice over a span of three months - once in December and then in March.

Elections in Europe and Britain's progress in leaving the European Union also spurred trading.

Revenue in the bank's fixed-income trading business rose to $1.7 billion from $873 million in the quarter. (mgstn.ly/2oKIZxA) (Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty)

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