U.S. investment bank Morgan Stanley (MS) has posted first-quarter earnings that beat Wall Street estimates due largely to continued growth in its wealth management business.
The investment house reported earnings per share (EPS) of $2.02 U.S. versus $1.66 U.S. that was the consensus estimate of analysts.
Revenue in the quarter totaled $15.14 billion U.S. compared to forecasts of $14.41 billion U.S. Sales increased 4% in Q1 from a year earlier.
Revenue from Morgan Stanley’s wealth management unit rose 5% to $6.88 billion U.S., topping estimates by $230 million U.S.
Stock trading revenue grew 4.1% to $2.84 billion U.S., which was $160 million U.S. more than had been expected.
Investment banking revenue increased 16% to $1.45 billion U.S., beating the $1.40 billion U.S. forecast as mergers and acquisitions (M&A) and initial public offerings (IPOs) come roaring back on Wall Street after two down years.
Morgan Stanley’s latest financial results come amid reports that U.S. regulators are investigating the investment bank over potential shortfalls in how it screens clients for its booming wealth management division.
The stock of Morgan Stanley has declined 3% over the last 12 months to trade at $86.99 U.S. per share.
