CHARLOTTE, N.C.: Morgan Stanley noticed its fourth-quarter earnings surge 48% from a yr earlier, because the Wall Road financial institution benefited from the markets upward swing and buyers jubilation for tech shares and IPOs late final yr.
The New York-based agency posted a revenue $3.39 billion, or $1.81 a share, up from $2.31 billion, or $1.30 a share, in the identical interval a yr earlier. The outcomes had been considerably higher than the $1.30-per-share revenue that analysts had anticipated, in response to FactSet.
Like its major competitor Goldman Sachs, who additionally noticed a large revenue improve, Morgan Stanley noticed a surge of income in its core funding banking and buying and selling operations.
Funding banking revenues had been up 46% from a yr earlier, largely attributable to increased fairness underwriting charges. Morgan Stanley has a big enterprise taking firms public, and several other massive tech corporations went public within the final three months of the yr. That was a boon for the corporations underwriting enterprise.
Buying and selling income rose 32%. The inventory market steadily moved increased the second half of 2020, which resulted within the inventory market hitting a number of highs alongside the best way. Bond buying and selling revenues had been additionally increased.
Morgan Stanleys wealth administration arm, which the corporate grew during the last decade to assist the agency discover steadier sources of earnings as a substitute of the boom-bust cycle of markets, additionally had a robust quarter. Web revenues within the agency had been up 24% from a yr earlier.
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