April 19 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
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
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