Movers: Morgan Stanley reports record 70% rise in profit
NEW YORK: Morgan Stanley, the U.S. securities firm, said Wednesday that its first-quarter profit rose 70 percent to set a record thanks to trading gains and a jump in investment banking fees.
Net income climbed to $2.67 billion in the three months that ended Feb. 28 from $1.57 billion a year earlier. Profit exceeded the highest estimate of 16 analysts surveyed, and the company's stock rose the most in three years.
The chief executive, John Mack, guided Morgan Stanley to record earnings last year and first-quarter results benefited from a 35 percent increase in trading revenue, a 25 percent jump in fees from advising companies and a nearly tripled rise in investment gains. Earnings growth beat Goldman Sachs, Lehman Brothers and Bear Stearns.
"Extremely strong," said Bill Fitzpatrick, an analyst at Johnson Asset Management, about the best quarter at Morgan Stanley since it went public in 1986.
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