Morgan Stanley reported a 150% climb in its first-quarter profit on a boom in investment banking and trading activity, according to Yahoo!.
- Net income attributable to shareholders rose to $3.98 billion or $2.19 per share in the first quarter. This compares with analysts expectations of $1.70 per share, and the reported net income of $1.59 billion or $1.01 per share in 2020.
- Net revenue jumped 61% to $15.72 billion, benefiting largely from reserve releases, record capital markets activity, and a surge in trading.
- Investment banking revenue more than doubled to $2.6 billion. Morgan Stanley also gained hefty fees from the IPOs of firms such as Affirm Holdings and AppLovin Corp.
- The firm reported a total one-off loss of over $900 million related to a credit event and subsequent losses from a “single prime brokerage client.” It had exposure to family fund Archegos Capital Management that defaulted on margin calls last month.