Morgan Stanley turns profit
Morgan Stanley saw a stronger profit than expected in three months. The bank reported a $1.4 billion profit against the $138 million loss last year. Shares are up 2.7%. The results represent a significant victory for the firm. Morgan Stanley has reportedly been bulking up the trading division this year, adding several hundred more employees.
On the other hand, Goldman Sachs disappointed investors after reporting a sharp fall in profits after being hit by the UK’s bonus tax, a US fine and poor trading. Bank of America also seems to be struggling.
Morgan Stanley said employee compensation for the quarter – which included the bonus pool – was $3.9 billion. But it said it had set aside $361 million to cover the cost of a one-off tax on bonuses paid to UK employees.
Meanwhile, another Wall Street stalwart, Wells Fargo, reported its quarterly net profit fell slightly to $3.1bn from $3.2bn a year earlier.