Image source: Morgan Stanley
(Reuters) – Morgan Stanley posted an about 57% rise in fourth-quarter profit on Wednesday, as the Wall Street bank’s trading business benefited from coronavirus-induced volatility in financial markets.
Net income applicable to common shareholders rose to $3.27 billion, or $1.81 per share, in the quarter ended Dec. 31, compared with $2.09 billion, or $1.30 per share, a year earlier.
Analysts had expected a profit of $1.27 per share, according to Refinitiv IBES data.
Revenue from the bank’s institutional securities business, its largest source of income, rose to $7 billion from $5.05 billion last year.
High trading volumes during the quarter, stemming from the U.S. 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 $13.64 billion in the quarter, from $10.86 billion last year.
Reporting by Ambar Warrick in Bengaluru and Matt Scuffham in New York; Editing by Shounak Dasgupta