Wall Street bank Morgan Stanley’s profit doubled in the last quarter of the year, far exceeding expectations, as trading activity surged following the US presidential election.
Earnings applicable to the bank’s common shareholders soared to $1.51 billion (€1.41 billion) in the three months ended December 31st from $753 million a year earlier, while earnings per share increased to 81 cents from 39 cents.
Revenue in the bank’s fixed-income business jumped to $1.5 billion in the quarter from $550 million in the same period last year, an increase of about 173 per cent.
JPMorgan Chase & Co, the number one US bank by assets, reported a 31 per cent rise in fixed-income revenue last week, while second-ranked Bank of America said its revenue from trading fixed-income securities, currencies and commodities had risen 12 per cent.
Goldman Sachs, Morgan Stanley’s traditional rival, reports on Wednesday.
Morgan Stanley ranked second in worldwide announced M&A deals during 2016, according to Thomson Reuters data. The bank laid off a number of senior investment bankers earlier this month and cut bonuses by roughly 15 per cent, according to sources familiar with the matter. – (Reuters)
