Morgan Stanley profits 'higher than estimated'

21 April 2011

First quarter profits recorded by Morgan Stanley were greater than many anticipated, it has been found.

With trading revenue more than doubling that witnessed in the fourth quarter of last year, the earnings beat the amount previously estimated by analysts, Bloomberg reports.

Net income for the bank tumbled 45 per cent to $968 million from $1.78 billion a year earlier.

However, experts surveyed by the news agency had predicted earnings from continuing operations to come to 40-cents a share - but this actually came in at 46 cents.

Glenn Schorr, an analyst at Nomura Holdings, said: "We think Morgan's investment bank posted solid results, with clear improvement in trading, particularly in equities."

He added trading improvements is a key area that investors had been waiting for.

Better-than-expected profits were also recently posted by Goldman Sachs group, which earned higher amounts than had previously been anticipated through its bond trading operations.

By Claire Archer

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