Morgan Stanley reports surge in Q4 profits
US banking giant Morgan Stanley has today announced fourth quarter profits surged by 60% – in line with forecasts.
The Wall Street bank said net profit came in at $600 million (A?375 million) for the final three months of 2010, against a profit of $376 million a year ago.
Shares in the bank were up 2% at the start of trading in New York following the news.
Meanwhile, total net revenues for the three-month period rose 14% against a year ago to $7.8 billion.
The bank also highlighted that it had reviewed its bonus culture. It said: “For 2010, Morgan Stanley again significantly increased the portion of year-end compensation that is deferred and subject to claw-back, while reducing the portion paid in cash.”
The figures come shortly after Goldman Sachs reported a $2.39 billion (A?1.49 billion) profit for the fourth quarter, 53% lower compared with a year ago.
However, the figures were roughly in line with expectations but shares still fell 3.1% to $169.22 in pre-market trading.
Meanwhile, Citigroup reported a $1.3 billion (A?811 million) profit for the fourth quarter of 2010, against a loss of $7.6 billion loss a year earlier.
Meanwhile, revenue surged to $18.4 billion, from $5.4 billion in the same period a year ago but were 11% lower compared with the third quarter.
However, earnings and revenue missed Wall Street expectations and shares in Citigroup fell 4% after the announcement.
JPMorgan, meanwhile, recently announced income surged 47% in the fourth quarter.
Fourth-quarter profit increased to $4.8 billion, or $1.12 a share, from $3.3 billion, or 74 cents a share, compared with the year ago period.
Wells Fargo & Co. and Bank of America Corp. are scheduled to report their fourth quarter earnings tomorrow.
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