Business

Morgan Stanley profits soar 87% as trading rebounds

Morgan Stanley office building Image copyright Reuters

US investment bank Morgan Stanley has posted an 87% jump in profits to $1.65bn (£1bn) in the three months to the end of September.

Trading of currencies, commodities and bonds was a big driver of profits, as was wealth management - advising high earners on their finances.

On Thursday, rival bank Goldman Sachs reported a 50% rise in profits.

Banks' bond trading activities have reportedly benefitted from problems at bond giant Pimco.

In September, trading superstar Bill Gross made a surprise exit from the world's biggest bond firm.

The departure of Mr Gross from Pimco reportedly prompted investors to withdraw billions of dollars from the company, money which has found its way to other trading businesses.

Morgan Stanley's total revenue for the quarter rose 12% to $8.91bn.

Bond trading revenues were up 19.4% to $997m. Wealth management revenue rose 9% to $3.79bn.

"We are well positioned to create superior returns for our shareholders, particularly as the US economy continues to strengthen," chief executive and chairman James Gorman said in a statement.

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