Morgan Stanley profit doubles on soaring trading and interest revenue
New York — Wall Street bank Morgan Stanley’s profit doubled in last year’s fourth quarter, far ahead of expectations as trading activity surged after the US presidential election. Earnings applicable to common shareholders soared to $1.51bn from the previous fourth quarter’s $753m and earnings a share rose to 81c from 39c. Most analysts expected a profit of 65c a share, according to Thomson Reuters I/B/E/S. Trading in debt securities and stocks shot up in the wake of Donald Trump’s November 8 election victory as investors hoped his policies will boost the US economy. Revenue in the bank’s fixed-income business jumped to $1.5bn from $550m in the previous matching quarter, an increase of about 173%. JPMorgan Chase, the No 1 US bank by assets, posted a 31% rise fixed-income revenue last week, while second-ranked Bank of America said its revenue from trading fixed-income securities, currencies and commodities rose 12%. Goldman Sachs, Morgan Stanley’s traditional rival, reports on Wednes...
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