Excluding an accounting charge tied to the firm’s own debt, profit was 50 cents a share, topping the 40-cent average estimate of 24 analysts surveyed by Bloomberg.
CEO James Gorman has made Morgan Stanley more reliant on wealth-management revenue while decreasing the amount of capital allocated to fixed-income trading, which last quarter generated the least revenue among the firm’s peers. Stock trading and Morgan Stanley’s retail brokerage, the world’s biggest, both benefited from an 18% rise in the Standard & Poor’s 500 Index in the first nine months of 2013.
'Equity capital markets was really strong and equity trading was strong, and I think that’s a really good positive for Morgan Stanley', David Konrad, head of U.S. bank research at Macquarie Group Ltd., said in a Bloomberg Radio interview before results were announced. 'They are very focused on the equity business'.
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