Morgan Stanley posted fourth-quarter earnings and revenue on Thursday that beat analyst expectations, excluding a charge related to the tax bill, as strong results in wealth management offset a big drop in fixed income trading revenue.
Here`s how the banking giant fared against analyst estimates:
Wealth management revenue grew by 10.5 percent on a year-over-year basis, helping offset declines in the bank`s trading revenue. Fixed income, commodities and currencies trading revenue decreased by 46 percent. Equities trading revenue fell 5 percent.
"Wealth management was not decent, it was great," CFO Jonathan Pruzan told CNBC. We feel "very good about momentum in the business. Flows are great."
The company`s stock rose 1.4 percent in the premarket Thursday. Morgan Stanley shares are up 4.1 percent this year, slightly outperforming the S&P 500, which is up 3.
Morgan Stanley`s bottom line excludes a one-time $990 million hit resulting from the recent changes to the U. Its earnings per share totaled 29 cents when including the charge.
President Donald Trump signed a bill last month that slashed the corporate tax rate to 21 percent from 35 percent. The changes are expected to be a long-term positive for companies, but some have taken one-time charges because of them. Some of these companies include Citigroup and Bank of America.
Morgan Stanley`s results come a day after Goldman Sachs — another bank known for its trading business — reported a revenue decline of 50 percent in its fixed income, currencies and commodities trading business.
Goldman said trading is in a "challenging environment characterized by low levels of volatility and low client activity."
—CNBC`s Wilfred Frost contributed to this report.
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