Morgan Stanley profits rise, fueled by Wall Street



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Morgan Stanley said fourth-quarter profits rose 51% from a year earlier, with another major U.S. bank coming out of a turbulent year in better shape than expected at the start of the coronavirus pandemic.

The New York-based company reported profit of $ 3.39 billion, or $ 1.81 per share, on revenue of $ 13.64 billion. That beat consensus estimates from analysts polled by FactSet, who predicted earnings per share of $ 1.30 on revenue of $ 11.58 billion.

Morgan Stanley supplemented the fourth quarter earnings reports for the nation’s major banks, which continued to benefit from a recovery on Wall Street and federal pandemic response measures that prevented a worst-case scenario. Rival Goldman Sachs Group Inc. on Tuesday reported fourth-quarter profit more than double the previous year’s results and annual revenue that was at an 11-year high.

By focusing on wealthy Americans, large corporations and fund managers, Morgan Stanley is less exposed to mass unemployment and small business closings than more Main Street banks.

Morgan Stanley’s stock and bond trading income rose 32% to $ 4.22 billion. Advisory fees on transactions and underwriting stock and bond offerings rose 46% to $ 2.30 billion.

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