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| Morgan Stanley reports first quarter profit | Morgan Stanley reports first quarter profit |
| (34 minutes later) | |
| Morgan Stanley has reported a first quarter profit of $958m (£627m), compared with a $119m loss last year. | Morgan Stanley has reported a first quarter profit of $958m (£627m), compared with a $119m loss last year. |
| But investors appeared to be unimpressed, sending shares down 4.33% in afternoon trading. | |
| Revenue from its wealth management group offset a decline in its fixed income and commodities trading unit. | Revenue from its wealth management group offset a decline in its fixed income and commodities trading unit. |
| The US bank has been focusing on wealth management as a stable source of growth. | The US bank has been focusing on wealth management as a stable source of growth. |
| "Morgan Stanley demonstrated solid momentum across the firm this quarter," said chief executive James Gorman in a statement. | "Morgan Stanley demonstrated solid momentum across the firm this quarter," said chief executive James Gorman in a statement. |
| Excluding a one-off charge related to changes in the value of the bank's debt, it recorded a profit of $1.2bn for the quarter, down from $1.4bn last year. | Excluding a one-off charge related to changes in the value of the bank's debt, it recorded a profit of $1.2bn for the quarter, down from $1.4bn last year. |
| Excluding these charges, total revenue fell 4.8% to $8.5bn, although still above analysts' expectations of $8.35bn. | Excluding these charges, total revenue fell 4.8% to $8.5bn, although still above analysts' expectations of $8.35bn. |
| Revenue from its wealth management business, which provides financial advice for high net-worth clients, made up 41% of the bank's total revenue, growing 5.4% to $3.47bn. | Revenue from its wealth management business, which provides financial advice for high net-worth clients, made up 41% of the bank's total revenue, growing 5.4% to $3.47bn. |
| Operating pre-tax profit in the wealth management business was the highest in the bank's history, said Mr Gorman. | Operating pre-tax profit in the wealth management business was the highest in the bank's history, said Mr Gorman. |
| However, revenue from the bank's fixed income and commodities trading unit fell to $1.5bn from $2.6bn a year earlier, reflecting falls in commodities and rates. | However, revenue from the bank's fixed income and commodities trading unit fell to $1.5bn from $2.6bn a year earlier, reflecting falls in commodities and rates. |
| "Morgan Stanley has seen a huge shift to global wealth management, which should pay off," said Bernie Williams, a vice president at USAA Investments. | "Morgan Stanley has seen a huge shift to global wealth management, which should pay off," said Bernie Williams, a vice president at USAA Investments. |
| "I'm attracted to that business because it has fewer regulatory obstacles than trading and it provides more stable earnings," he added. | "I'm attracted to that business because it has fewer regulatory obstacles than trading and it provides more stable earnings," he added. |
| Morgan Stanley is scheduled to purchase in June Citigroup's remaining stake in their joint venture, Morgan Stanley Smith Barney, the retail brokerage. | Morgan Stanley is scheduled to purchase in June Citigroup's remaining stake in their joint venture, Morgan Stanley Smith Barney, the retail brokerage. |