Morgan Stanley posts profit on surging equity trading
Morgan Stanley reported a fourth-quarter profit on a surge in equity sales and trading and strong margins at its wealth management business, sending its shares up 7 percent before the bell.
January 18, 2013 / 19:24 IST
Morgan Stanley reported a fourth-quarter profit on a surge in equity sales and trading and strong margins at its wealth management business, sending its shares up 7 percent before the bell.
The investment bank reported income from continuing operations of USD 573 million, or 28 cents per share, compared with a loss of USD 222 million, or 13 cents per share, a year earlier.Revenue from sales and trading rose 43 percent to nearly USD 3 billion. Wealth management business grew 8 percent to USD 3.5 billion."Our firm is now poised to reach the returns of which it is capable on behalf of our shareholders," Chief Executive James Gorman said in a statement.Compensation expense, typically the biggest cost for Wall Street firms, fell 5 percent to USD 3.6 billion in the fourth quarter from a year earlier.Rival Goldman Sachs Inc said on Wednesday it cut compensation costs 11 percent in the fourth quarter, helping boost return to shareholders. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
