Morgan Stanley profits soar 69%

Morgan Stanley today posted a 69% increase in first-quarter profit on strong advisory fees from higher trading levels and increased investment banking fees. The New York-based investment bank earned $2.66 billion, or $2.51 per share, in the quarter ended Feb. 28, compared to $.1.57 billion or $1.48 per share, in the year-ago period. Excluding a sale of Quilter Holdings Ltd., the company posted profit from continuing operations of $2.56 billion or $2.40 per share. Revenues during the period increased 29% to $11 billion, compared to $8.5 billion during the year-ago period. Analysts polled by Thomson Financial projected earnings of $1.88 per share on revenue of $9.42 billion. The institutional securities division posted record revenues of $7.63 billion, up 37% from $5.55 billion during the year-ago period. Revenues from fixed incomes sales and trading rose 31%, while equity sales and trading revenues increased 36%, to $3.6 billion and $2.2 billion, respectively. The Global Wealth Management business saw revenues increase 15% to $1.49 billion, compared to $1.266 billion during the year-ago period, as financial adviser productivity and client assets per global representative reached all-time highs. Assets under management or supervision stood at $500 billion, up $58 billion or 13%, from a year ago.