Beating its closest rival Goldman Sachs which recently showed an increase in profits of 50%, Morgan Stanley has performed considerably better posting quarterly results of +87% in terms of profits. Moving profit from $1bn to $1.65bn. Excellent dealing in terms of wealth management, currencies, bonds and commodities all contributed o this performance.
Recent troubles at bond traders Pimco has helped Morgan Stanley, especially as Pimco’s star trader Bill Gross left the company not long ago. It is felt that key investors on hearing about Bill Gross’s departure withdrew sizable investments, some of which may have been relocated with Morgan Stanley. Revenues for the investment house rose to 12% to $8.9bn.
“We are well positioned to create superior returns for our shareholders, particularly as the US economy continues to strengthen,” Morgan Stanleys CEO James Gorman has said.
Summary by John Mills
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29 July 2014