Morgan Stanley posts strong 1Q profit; 74%

NEW YORK: Wealth management and investment banking firm Morgan Stanley saw profits rise 74 percent in the first quarter, helped by its well-regarded trading desks. Morgan Stanley’s wealth management arm, a part of the firm’s business that management has been focusing much of its energy on, also grew profits in the quarter. The New York-based bank said yesterday that it earned $1.93 billion in the first quarter, or $1.00 a share, compared with $1.13 billion, or 55 cents per share, in the same period a year earlier. The results topped analysts’ expectations of 89 cents per share, according to FactSet. After Goldman Sachs reported a disappointing first-quarter profit on Tuesday, largely due to lackluster trading, there were concerns that Morgan Stanley might be in a similar position. That turned out not to be the case. Morgan Stanley’s institutional securities division, which includes its investment bank and trading operations, had net revenue of $5.15 billion compared with $3.71 billion a year earlier.