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Morgan Stanley optimistic as Q4 earnings beat estimates
17 January 2017
Equity sales and trading revenues helped by strength in derivatives
Stanley boss James Gorman struck a positive tone on Tuesday as
the investment bank posted better-than-expected fourth quarter
Revenues of $9bn
between October and December were ahead of the $8.47bn
anticipated by analysts.
Meanwhile, the $1.7bn
net income figure beat the $908m recorded during the same
period in 2015.
Equity sales and
trading net revenues of $2bn increased from $1.8bn a year
The bank put this
down to solid results across products and regions, with
particular strength in derivatives.
$1.5bn of fixed
income sales and trading revenues was an improvement on the
$550m a year ago, when weaker levels of client activity in
rates and foreign exchange hampered results.
Asset management fee
revenues of $2.2bn increased from $2.1bn in 2015's Q4,
reflecting market appreciation and positive flows.
"We are optimistic
about opportunities in 2017 and beyond and remain focused on
serving our clients and achieving our strategic objectives,"
said Gorman, Morgan Stanley’s chairman and chief
Shares in Morgan Stanley have risen by
more than 30% since November. A friendlier regulatory
environment and lower taxes under Donald Trump’s
administration could provide significant boost to bank revenues
SocGen analysts upgraded their estimates
for Morgan Stanley last week, adding that the firm could be one
of the biggest beneficiaries of Trump’s