Morgan Stanley posted fourth-quarter earnings and revenue on Thursday that beat analyst expectations, excluding a charge related to the tax bill, as strong results in wealth management offset a big drop in fixed income trading revenue.
Here`s how the banking giant fared against analyst estimates: Wealth management revenue grew by 10.
5 percent on a year-over-year basis, helping offset declines in the bank`s trading revenue.
Fixed income, commodities and currencies trading revenue decreased by 46 percent.
Equities trading revenue fell 5 percent.
'Wealth management was not decent, it was great,' CFO Jonathan Pruzan told CNBC.
We feel 'very good about momentum in the business.
Flows are great.
' The company`s stock rose 1.
4 percent in the premarket Thursday.
Morgan Stanley shares are up 4.
1 percent this year, slightly outperforming the S&P 500, which is up 3.
Morgan Stanley`s bottom line excludes a one-time $990 million hit resulting from the recent changes to the U.
Its earnings per share totaled 29 cents when including the charge.
President Donald Trump signed a bill last month that slashed the corporate tax rate to 21 percent from 35 percent.
The changes are expected to be a long-term positive for companies, but some have taken one-time charges because of them.
Some of these companies include Citigroup and Bank of America.
Morgan Stanley`s results come a day after Goldman Sachs — another bank known for its trading business — reported a revenue decline of 50 percent in its fixed income, currencies and commodities trading business.
Goldman said trading is in a 'challenging environment characterized by low levels of volatility and low client activity.
' —CNBC`s Wilfred Frost contributed to this report.
Here`s how the banking giant fared against analyst estimates: Wealth management revenue grew by 10.
5 percent on a year-over-year basis, helping offset declines in the bank`s trading revenue.
Fixed income, commodities and currencies trading revenue decreased by 46 percent.
Equities trading revenue fell 5 percent.
'Wealth management was not decent, it was great,' CFO Jonathan Pruzan told CNBC.
We feel 'very good about momentum in the business.
Flows are great.
' The company`s stock rose 1.
4 percent in the premarket Thursday.
Morgan Stanley shares are up 4.
1 percent this year, slightly outperforming the S&P 500, which is up 3.
Morgan Stanley`s bottom line excludes a one-time $990 million hit resulting from the recent changes to the U.
Its earnings per share totaled 29 cents when including the charge.
President Donald Trump signed a bill last month that slashed the corporate tax rate to 21 percent from 35 percent.
The changes are expected to be a long-term positive for companies, but some have taken one-time charges because of them.
Some of these companies include Citigroup and Bank of America.
Morgan Stanley`s results come a day after Goldman Sachs — another bank known for its trading business — reported a revenue decline of 50 percent in its fixed income, currencies and commodities trading business.
Goldman said trading is in a 'challenging environment characterized by low levels of volatility and low client activity.
' —CNBC`s Wilfred Frost contributed to this report.
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