Devdiscourse
Development News Edition
Give Feedback
VisionRI - Urban Development

UPDATE 1-Morgan Stanley profit beats estimates on wealth management, lower costs


Reuters
Updated: 17-04-2019 17:09 IST
UPDATE 1-Morgan Stanley profit beats estimates on wealth management, lower costs

Morgan Stanley beat analysts' estimates for a quarterly profit on Wednesday on gains in its wealth management business and lower expenses, sending its shares up 3 percent.

Revenue from the wealth management unit rose slightly in the first quarter, bouncing back from a drop in the preceding quarter, and was the only bright spot in an otherwise bleak report. The company has been striving to grow its wealth management business, which provides financial advice to wealthy clients, to reduce its dependence on trading, which is more exposed to swings in market volatility.

Trading for Morgan Stanley, as with other large Wall Street banks, was weak. Revenue from sales and trading fell 15 percent to $3.74 billion, with equities trading slipping 21 percent. Market activity slowed considerably in the first quarter of the year as concerns over the U.S.-China trade war eased and markets rebounded from steep losses in December 2018.

Rival Goldman Sachs Group Inc on Monday reported an 18 percent drop in overall trading, with equities slipping 24 percent. Morgan Stanley's investment banking revenue dropped 24 percent, hurt mainly by declines in its underwriting business, which includes initial public offerings, and lower advisory fees.

Morgan Stanley's total revenue fell 7 percent to $10.29 billion, while non-interest expenses dropped 4 percent. The bank said earnings attributable to common shareholders fell 9 percent to $2.34 billion, or $1.39 per share. Excluding items, the company earned $1.33 per share. https://mgstn.ly/2vaVd4I

Analysts had estimated $1.17 per share, according to IBES data from Refinitiv. (Reporting By Aparajita Saxena in Bengaluru Editing by Saumyadeb Chakrabarty)


POST A COMMENT