Morgan Stanley profits climb 30% on trading boom
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The news: Morgan Stanley’s profits soared during the first-quarter, as traders across both equities and fixed-income desks capitalised on the period’s volatility.
The numbers: The bank’s net income for the quarter hit USD5.6 billion ($7.84 billion), up from USD4.3 billion the year prior
Morgan Stanley’s equity traders brought in USD5.15 billion revenue, a 25% jump, while fixed-income traders notched a 29% revenue increase, to USD3.4 billion.
Investment-banking fees at the bank climbed 36% in the quarter to USD2.12 billion on reinvigorated deal activity, while the bank’s wealth division netted USD118.4 billion in net new assets, ahead of expectations.
The context: Morgan Stanley capped Wall Street’s Q1 bank earnings, with traders at the US lenders almost across the board taking full advantage of the volatility brought about by the Iran war and broad concerns about exposure to private credit and AI impacts, with Goldman Sachs, JPMorgan, Bank of America and Citigroup posting record stock trading revenue.
The bank’s non-interest expenses climbed 12% to USD13.5 billion, slightly above forecasts, and the bank recognised USD178 million in costs tied to severances made during the quarter.
The source: Morgan Stanley
