Morgan Stanley posts higher earnings
October 19, 2012, 12:10 am TWN
Reuters--Morgan Stanley on Thursday reported better-than-expected adjusted earnings for the third quarter as it boosted revenue from trading bonds, long a sore spot for the investment bank.
Income from continuing operations totaled US$561 million, or 28 cents per share, compared with US$64 million, or 2 cents per share, a year earlier.
On that basis, analysts had been expecting 24 cents per share, according to Thomson Reuters I/B/E/S. Morgan Stanley shares rose nearly 2 percent in premarket trading after the results were reported.
The main driver of the higher adjusted earnings were improvements in its institutional securities business, which includes trading and investment banking.
Pretax income in that business, excluding debt valuation adjustments, was US$345 million, compared with US$37 million a year ago.
Morgan Stanley's global wealth management business also showed improvement, excluding one-time integration costs and buying an additional stake in a retail brokerage joint venture with Citigroup Inc.