Morgan Stanley First-Quarter Profit Soars
By Peter Rudegeair
Morgan Stanley said Friday that first-quarter profit more than
doubled from a year earlier, another Wall Street firm that reaped
big gains from the euphoric market conditions of early 2021.
The New York-based bank reported profit of $4.1 billion, or
$2.19 a share, on revenue of $15.7 billion. That beat the consensus
estimates of analysts polled by FactSet of per-share earnings of
$1.72 on revenue of $14.1 billion.
Morgan Stanley rounded out an all-time great first quarter from
the nation's big banks. Asset prices rallied, millions of investors
traded stocks with abandon and scores of technology and
special-purpose acquisition companies listed their shares publicly,
creating an optimal environment for banks' Wall Street divisions.
On Wednesday, Morgan Stanley rival Goldman Sachs Group Inc.
reported record quarterly revenue and net income.
The same waves that lifted Goldman also lifted Morgan Stanley.
Stock- and bond-trading revenue rose 29% to $5.8 billion. Fees from
advising on deals and underwriting stock and bond offerings more
than doubled to $2.6 billion.
Morgan Stanley's E*Trade business also benefited from the burst
of trading activity among individual investors. The number of
retail-trading clients at Morgan Stanley increased 7% from the end
of 2020 to 7.2 million, and the average daily number of retail
trades the company handled for the quarter exceeded 1.6
Write to Peter Rudegeair at Peter.Rudegeair@wsj.com
(END) Dow Jones Newswires
April 16, 2021 08:08 ET (12:08 GMT)
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