Morgan Stanley - Profits Unsustainable ?

The Financial Times reports that Morgan Stanley reported a 7% increase in first quarter profits as 'robust' gains in fixed income compensated for falling revenues in equities and M&A.

Net income in the first quarter came in at $905m. Fixed income sales rose 48% to $1.7bn compared to 12 months ago, but these figures are considered by many to be unsustainable. Revenues from equity underwriting fell 60% and M&A numbers fell 43% to $166m from a year ago.

Chief executive Philip Purcell said that the firm's performance 'was accomplished in an exceedingly challenging environment characterised by a slumping global economy, declining consumer confidence, and a market consumer by prospect of war in Iraq.' Many analysts were surprised by the numbers, which came in higher than expectations.

Have something to tell us about this article?

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...