The investment banking giant Morgan Stanley reported its first quarter earnings. The bank reported 60 percent growth in the first quarter revenues. The Morgan Stanley is currently focusing entirely on the wealth management business in order to provide stability and maintain a steady force of income for the corporation. The wealth management division along with equities showed promising results.
The net revenue of $9.9 billion was reported along with earning per share rate of $1.18, which far above the estimation. The experts expected the bank to earn per share at the rate of 78-cents on revenue of $9.19 billion. The net 10 percent increase in the revenue is also recorded. The James Gorman, CEO of the Morgan Stanley informed that this has been one of the strongest quarter for the company in many years and the performance is uniform across all the areas. The disciplined expense management along with prudent risk profile are the keys for building platforms for future growth. The equity trading grew the rate of 35 percent, which makes the market value of $2.3 billion this quarter. The trading was the engine of the growth for the corporation. The results may reduce the competition for the Morgan Stanley and this is definitely a serious news for the other investment banking giants like Goldman Sachs and JP Morgan. The heightened volatility in this quarter has affected the businesses of these banks.
The stock market has reacted positively over this development with Morgan Stanley shares rising over 1.5 percent during pre-market trading. Over last one year the share value has increased around 20 percent.