Morgan Stanley's Q1 profit jumps 59% to US$2.39b

New York

MORGAN Stanley reported profit that beat analysts' estimates and the highest adjusted revenue in more than five years as equity trading and brokerage revenue jumped. First-quarter net income rose 59 per cent to US$2.39 billion, or US$1.18 a share, from US$1.51 billion, or 74 cents, a year earlier, the New York-based company said on Monday. Profit was 85 cents a share excluding an accounting gain and a tax benefit, topping the 78 cent average estimate of 24 analysts surveyed by Bloomberg.

Chief executive officer James Gorman has won support from investors for his strategy of shrinking the fixed-income unit and relying more on trading stocks and advising wealthy individuals on their investments. Return on equity (ROE) for the first quarter was 10.1 per cent excluding the adjustments, helping Mr Gorman with his goal of increasing annual ROE above 5 per cent for the first time since 2010, the year he took over.