Morgan Stanley has today reported a 40% jump in quarterly profit, as its trading business got a boost from increased market volatility.
The bank - the sixth biggest in the US - said its net income applicable to common shareholders rose to $2.58 billion in the first quarter ended March 31 from $1.84 billion a year earlier.
On a per-share basis, the company's earnings rose to $1.45 from $1.
Analysts on average were expecting a profit of $1.25 per share, according to Thomson Reuters.
After a subdued 2017, volatility has returned to the markets, roiling stocks, bonds, currencies and commodities on fears of a trade war between the US and China as well as concerns about inflation.
This has led to big revenue gains at banks with sizable trading operations such as Morgan Stanley and Goldman Sachs.
Morgan Stanley's sales and trading revenue rose 26% to $4.40 billion in the latest quarter, driven by a nearly 27% gain in equities trading revenue.
Total revenue at the bank rose 13.7% to $11.08 billion.
"Each of our businesses performed well, with significant client engagement across our global franchise, and Sales and Trading a particular highlight in a more active environment," its chief executive James Gorman said in a statement.
Rival Goldman Sachs posted a 31% increase in total trading revenue yesterday.
