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Morgan Stanley (MS) profit 1Q 2021

James Gorman, chairman and CEO of Morgan Stanley, spoke during an interview with Bloomberg TV in Beijing, China, on Thursday, May 30, 2019.

Julia Marchi Bloomberg | Getty Images

Morgan Stanley said Friday that first-quarter profits and earnings exceeded expectations of stronger-than-expected trading and investment banking results.

The bank reported earnings of $ 4.1

billion, or $ 2.19 per share, more than twice the $ 1.7 billion a year earlier. The firm said that excluding merger costs, adjusted earnings were $ 2.22 per share; analysts expected $ 1.70.

Revenue across the company rose 61 percent to a record $ 15.7 billion, beating analysts’ forecast by $ 1.6 billion.

Morgan Stanley’s expectations were high after rivals published strong results in trade and investment banking. The boom in the issuance of SPAC led to an increase in fees for capital market offices, and trading offices benefited from strong activity in fixed income markets and stock markets.

CEO James Gorman announced $ 20 billion in deals last year, marking the most aggressive takeovers since the financial crisis. He spent $ 13 billion to acquire E-Trade to expand its reach with mass wealth, and $ 7 billion to buy Eaton Vance to increase the volume of its investment management business. The acquisition of Eaton Vance ended in the first quarter.

Morgan Stanley is the last of the six largest US banks to report revenue for the first quarter.

JPMorgan Chase, Bank of America, Wells Fargo and Citigroup beat analysts’ expectations by helping to release money set aside earlier for loan losses. Goldman Sachs, a key rival, has outperformed forecasts for strong consulting and trading results.

Here’s what Wall Street expected:

Earnings: $ 1.70 per share, 68% higher than a year earlier, according to Refinitiv

Revenue: $ 14.1 billion, 49% higher than a year earlier

This story is evolving. Please check again for updates.

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