Morgan Stanley tops estimates despite bond trading woes
New York — Morgan Stanley’s adjusted quarterly profit topped Wall Street estimates on Thursday as strength in underwriting and wealth management offset a sharp but expected decline in bond trading revenue. The lender issued new targets that show it will continue to focus on making wealth management more profitable while also bringing overall costs down, moves aimed at ironing out the swings of its more volatile businesses. Like most other big US banks, Morgan Stanley took a fourth-quarter charge due to a US tax overhaul signed into law in December, but analysts have been looking past those one-time hits to focus on the long-term benefits of lower tax rates. Morgan Stanley’s underwriting business was a bright spot, particularly in equities, which was helped by the bank’s leading position in initial public offerings. Underwriting revenue rose 42% to $915m, while revenue from other parts of the institutional securities unit declined. Wealth management also posted revenue gains and its ...
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