U.S. investment bank Morgan Stanley (NYSE:MS) reported first-quarter revenue and profits that beat expectations on stronger-than-expected trading results.
Morgan Stanley posted a profit of $4.1 billion U.S., or $2.19 U.S. a share, more than double its $1.7 billion U.S. in earnings a year earlier. The firm said that, excluding merger related expenses, adjusted profit was $2.22 U.S. a share. Analysts polled by Refinitiv had expected $1.70 U.S. per share.
The investment bank said a boom in SPAC-issuance has led to increased fees for its equity capital markets desks, and that trading desks profited from strong activity across fixed income and stock markets. Furthermore, buoyant stock markets helped Morgan Stanley’s wealth management division reach new highs in terms of fees.
Morgan Stanley is the last of the six largest U.S. banks to report first-quarter earnings. JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) also beat analysts’ expectations with help from releasing money set aside for loan losses. Goldman Sachs investment bank beat estimates on strong advisory and trading results.
Morgan Stanley announced $20 billion U.S. in deals last year, marking its most aggressive takeover spree since the 2008-09 financial crisis. The investment bank spent $13 billion U.S. to acquire E-Trade and $7 billion U.S. to buy Eaton Vance. The Eaton Vance acquisition closed during the first quarter.
