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Morgan Stanley's quarterly profit surges on trading gains

Morgan Stanley's shares were up about 2% at $42.00 in premarket trading

Reuters 

Morgan Stanley's quarterly profit surges on trading gains

reported a 74 per cent jump in quarterly profit on Wednesday, topping analysts' estimates as from bond trading nearly doubled following hikes by the Federal Reserve.

The bank also hit a key milestone laid out by Chief Executive by achieving a 10.7 per cent return on equity, a measure of the firm's profitability. Gorman had set a target in January 2016 for nine per cent to 11 percent ROE by the end of this year.

Morgan Stanley's trading results echoed those across Wall Street, with the exception of chief rival Goldman Sachs Group Inc which was the only bank to report a drop in trading

Morgan Stanley's shares were up about two per cent at $42.00 in premarket trading.

"We reported one of our strongest quarters in recent years. All our businesses performed well in improved market conditions," Gorman said in a statement.

in the bank's fixed-income trading business rose to $1.7 billion from $873 million in the quarter, the best quarter for the business in two years. It was also the fourth quarter in a row that hit its $1 billion target for bond trading

"This is quite a number for a company that just two years ago was setting a billion dollars a quarter as an aspirational goal, and it stands in sharp relief to Goldman's airball yesterday," Oppenheimer analyst Chris Kotowski said in a note to clients.

Bond trading remained strong across during the quarter as investors shuffled their positions around US hikes. The Fed raised rates twice in three months, once in December and again in March. Elections in Europe and Britain's progress in leaving the European Union also spurred trading.

Chief Financial Officer Jonathan Pruzan remained cautious, however, noting in an interview that some of the optimism that fueled the stock market to all-time highs may be fading.

"At the end of the first quarter, some of the clouds that were far off into the distance are becoming closer into view," he said. "The outlook of these is uncertain and so I still have continued caution."

from trading in stocks, in which has held No 1 spot among banks, fell slightly to $2 billion from $2.1 billion.

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 88 cents per share, according to Thomson Reuters.

Net jumped 25 per cent to $9.75 billion, beating the average estimate of $9.27 billion.

Strong underwriting fees drove from investment banking to $1.55 billion, up about 40 per cent.

Through Tuesday's close, Morgan Stanley's shares had risen about 20 per cent since the US presidential election in November, compared with an 18 per cent rise in KBW Bank index.

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Morgan Stanley's quarterly profit surges on trading gains

Morgan Stanley's shares were up about 2% at $42.00 in premarket trading

Morgan Stanley's shares were up about 2% at $42.00 in premarket trading

reported a 74 per cent jump in quarterly profit on Wednesday, topping analysts' estimates as from bond trading nearly doubled following hikes by the Federal Reserve.

The bank also hit a key milestone laid out by Chief Executive by achieving a 10.7 per cent return on equity, a measure of the firm's profitability. Gorman had set a target in January 2016 for nine per cent to 11 percent ROE by the end of this year.

Morgan Stanley's trading results echoed those across Wall Street, with the exception of chief rival Goldman Sachs Group Inc which was the only bank to report a drop in trading

Morgan Stanley's shares were up about two per cent at $42.00 in premarket trading.

"We reported one of our strongest quarters in recent years. All our businesses performed well in improved market conditions," Gorman said in a statement.

in the bank's fixed-income trading business rose to $1.7 billion from $873 million in the quarter, the best quarter for the business in two years. It was also the fourth quarter in a row that hit its $1 billion target for bond trading

"This is quite a number for a company that just two years ago was setting a billion dollars a quarter as an aspirational goal, and it stands in sharp relief to Goldman's airball yesterday," Oppenheimer analyst Chris Kotowski said in a note to clients.

Bond trading remained strong across during the quarter as investors shuffled their positions around US hikes. The Fed raised rates twice in three months, once in December and again in March. Elections in Europe and Britain's progress in leaving the European Union also spurred trading.

Chief Financial Officer Jonathan Pruzan remained cautious, however, noting in an interview that some of the optimism that fueled the stock market to all-time highs may be fading.

"At the end of the first quarter, some of the clouds that were far off into the distance are becoming closer into view," he said. "The outlook of these is uncertain and so I still have continued caution."

from trading in stocks, in which has held No 1 spot among banks, fell slightly to $2 billion from $2.1 billion.

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 88 cents per share, according to Thomson Reuters.

Net jumped 25 per cent to $9.75 billion, beating the average estimate of $9.27 billion.

Strong underwriting fees drove from investment banking to $1.55 billion, up about 40 per cent.

Through Tuesday's close, Morgan Stanley's shares had risen about 20 per cent since the US presidential election in November, compared with an 18 per cent rise in KBW Bank index.

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Business Standard
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Morgan Stanley's quarterly profit surges on trading gains

Morgan Stanley's shares were up about 2% at $42.00 in premarket trading

reported a 74 per cent jump in quarterly profit on Wednesday, topping analysts' estimates as from bond trading nearly doubled following hikes by the Federal Reserve.

The bank also hit a key milestone laid out by Chief Executive by achieving a 10.7 per cent return on equity, a measure of the firm's profitability. Gorman had set a target in January 2016 for nine per cent to 11 percent ROE by the end of this year.

Morgan Stanley's trading results echoed those across Wall Street, with the exception of chief rival Goldman Sachs Group Inc which was the only bank to report a drop in trading

Morgan Stanley's shares were up about two per cent at $42.00 in premarket trading.

"We reported one of our strongest quarters in recent years. All our businesses performed well in improved market conditions," Gorman said in a statement.

in the bank's fixed-income trading business rose to $1.7 billion from $873 million in the quarter, the best quarter for the business in two years. It was also the fourth quarter in a row that hit its $1 billion target for bond trading

"This is quite a number for a company that just two years ago was setting a billion dollars a quarter as an aspirational goal, and it stands in sharp relief to Goldman's airball yesterday," Oppenheimer analyst Chris Kotowski said in a note to clients.

Bond trading remained strong across during the quarter as investors shuffled their positions around US hikes. The Fed raised rates twice in three months, once in December and again in March. Elections in Europe and Britain's progress in leaving the European Union also spurred trading.

Chief Financial Officer Jonathan Pruzan remained cautious, however, noting in an interview that some of the optimism that fueled the stock market to all-time highs may be fading.

"At the end of the first quarter, some of the clouds that were far off into the distance are becoming closer into view," he said. "The outlook of these is uncertain and so I still have continued caution."

from trading in stocks, in which has held No 1 spot among banks, fell slightly to $2 billion from $2.1 billion.

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 88 cents per share, according to Thomson Reuters.

Net jumped 25 per cent to $9.75 billion, beating the average estimate of $9.27 billion.

Strong underwriting fees drove from investment banking to $1.55 billion, up about 40 per cent.

Through Tuesday's close, Morgan Stanley's shares had risen about 20 per cent since the US presidential election in November, compared with an 18 per cent rise in KBW Bank index.

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Business Standard
177 22