Morgan Stanley reported profit that beat analysts’ estimates as a surprise jump in fixed-income results helped the firm post the only increase in trading revenue among the six biggest U.S. firms this year.
A five-quarter rally in U.S. stocks has helped CEO James Gorman boost revenue from wealth management and gain market share in equities trading. The firm also saw a 9% increase in fixed-income trading revenue to a two-year high while its peers posted declines.
'Rates and foreign-exchange are bigger businesses for the big banks, while commodities, which had a little bit better quarter off a depressed base, and credit, which was more resilient, are bigger drivers for the bulge-bracket firms', Devin Ryan, an analyst at JMP Group Inc., said before the results were announced.
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