The world’s biggest brokerage and Wall Street giant Morgan Stanley reported a 60 percent jump in its fourth quarter profits, supported by the strong performance of its retail brokerage business.
Net profit for the fourth quarter was reported at $836 million (£522.5 million) by the second largest investment bank, compared to $617 million reported a year earlier. However, trading revenue for the quarter was down compared to previous year.
Earnings Per Share (EPS) was recorded at 41 Cents compared to 29 Cents recorded a year earlier. Excluding the gain 17 Cents from the sale of stake in China International Capital Corp, EPS stood at 26 Cents, lower than analysts’ consensus of 28 Cents.
CEO James Gorman is emphasizing on reviving the company’s trading activities to boost its profitability. Douglas Ciocca, Managing Director of Renaissance Financial Corp said: “They need to be given some time to work out some of the issues, particularly in a model that’s 180 degrees from what was being encouraged and emphasized a couple years ago”.
Revenue for the quarter grew by 14 percent to $7.8 billion.