Wall Street investment houses Lehman Brothers Holdings Inc and Morgan Stanley Group Inc on Tuesday reported strong gains in profits amid a boom in trading and mergers.
Morgan Stanley, the global leader in mergers and acquisitions, said its profits rose 26 per cent, while Lehman Brothers earnings soared 84 per cent.
Morgan Stanley said its profits rose to $236 million, or $1.43 a share, for its fiscal fourth quarter ended on November 30, from year-earlier earnings of $187 million, or $1.08 a share. Revenues soared to $1.51 billion from $1.17 billion.We have just completed a very successful year at Morgan Stanley, said chairman Richard Fisher. The firm also said that its board approved the repurchase of an additional $400 million worth of common stock and a 14 per cent increase in its quarterly dividend. Morgan Stanley said it bought back about $507 million of stock in fiscal 1996 and $103 million in 1995.
Its profits fell short of Wall Street expectations, which averaged $1.51 per share, according to First Call, which tracks analysts estimates. The stock was off 87.50 cents at $55.625 on the New York bourse afternoon trading.
