Morgan Stanley on Wednesday posted results that topped analyst estimates as the firm's trading operations generated $1 billion more in revenue than expected.
The bank said profit jumped 29% to $5.57 billion, or $3.43 a share. Revenue rose 16% to $20.58 billion, fueled by gains in the firm's trading, investment banking and wealth management businesses.
Equities trading revenue jumped 25% to a record $5.15 billion, or about $450 million above the StreetAccount estimate. The firm cited strong volumes across its global equities franchise, especially in its prime brokerage business catering to hedge funds and its derivatives business.
Fixed income revenue rose 29% to $3.36 billion, or about $540 million more than expected, helped by commodities trading that benefited from volatility in energy markets in the period.
Analysts will want to know what CEO Ted Pick has to say on the business outlook for the rest of the year as geopolitical tensions remain high.
