Morgan Stanley profit beats estimates on wealth management, lower costs

REUTERS: Morgan Stanley outperformed analysts' earnings for a quarterly profit on Wednesday for profits in its wealth management business and lower expenses, which raised its shares to 3 percent.

Revenue from the wealth management unit increased slightly in the first quarter, recovering from a decline in the previous quarter, and was the only bright spot in a report for the other gloomy.

The company has endeavored to grow its wealth management business, which provides financial advice to wealthy clients, to reduce their dependence on trade, which is more exposed to changes in market volatility.

The Morgan Stanley trade, as with other large Wall Street banks, was weak. Revenues from sales and transactions fell 15 percent to US $ 3.74 billion, while stock shares fell 21 percent.

Market activity slowed down considerably in the first quarter of the year as concerns about the trade war between the United States and China diminished and markets recovered from heavy losses in December 2018.

The rival Goldman Sachs Group Inc reported an 18 percent drop in general operations on Monday, with a share fall of 24 percent.

Revenue from investment banking at Morgan Stanley fell 24 percent, affected mainly by declines in its underwriting business, which includes lower initial public offerings and consulting fees.

Morgan Stanley's total revenues fell 7 percent to $ 10.29 billion, while non-interest expenses fell 4 percent.

The bank said earnings attributable to common shareholders fell 9 percent to US $ 2,340 million, or US $ 1.39 per share. Excluding items, the company earned US $ 1.33 per share. https://mgstn.ly/2vaVd4I

Analysts had estimated US $ 1.17 per share, according to IBES de Refinitiv data.