A rejuvenation of investment banking and growth in wealth management pushed Morgan Stanley’s first-quarter profit above what was expected, and the market responding by driving shares up 3.7%.
The bank and financial services company saw ballooning client assets for its wealth and investment management divisions, while fixed-income underwriting thrived for the second consecutive quarter, thanks to higher bond issuance.
Analysts had forecast an average profit of $1.66 a share, but the actual numbers rang in at $2.02 per share. Morgan Stanley reported total revenue of $15.14 billion, a jump from last year’s $14.5 billion.
“We saw building momentum in investment banking, both in our M&A and underwriting pipelines across corporate and financial sponsor clients,” said CEO Ted Pick. “…The fact that the U.S. economy continues to grow, that China is weaker, the parts of Europe are weaker highlights the fact that people want to get even more exposure to the U.S.”
