Morgan Stanley profit surges on trading strength

Revenue from the bank’s institutional securities business, its largest source of income, rose to US$7 billion from US$5.05 billion last year. — Reuters pic
Revenue from the bank’s institutional securities business, its largest source of income, rose to US$7 billion from US$5.05 billion last year. — Reuters pic

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NEW YORK, Jan 20 — Morgan Stanley posted an about 57 per cent rise in fourth-quarter profit today, as the Wall Street bank’s trading business benefited from coronavirus-induced volatility in financial markets.

Net income applicable to common shareholders rose to US$3.27 billion (RM13.2 billion), or US$1.81 per share, in the quarter ended December 31, compared with US$2.09 billion, or US$1.30 per share, a year earlier.

Analysts had expected a profit of US$1.27 per share, according to Refinitiv IBES data.

Revenue from the bank’s institutional securities business, its largest source of income, rose to US$7 billion from US$5.05 billion last year.

High trading volumes during the quarter, stemming from the US elections and the release of coronavirus vaccines, benefited the bank’s trading unit, which is housed within the institutional securities business.

Net revenue rose to US$13.64 billion in the quarter, from US$10.86 billion last year. — Reuters

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