Morgan Stanley (MS) posted higher profit than analysts projected as the Wall Street firm’s fixed-income desk garnered the biggest gain so far from a trading frenzy after real-estate mogul Donald Trump’s election to the U.S. presidency.
Earnings of 81 cents a share compared with the 65-cent average estimate from analysts in a Bloomberg survey. Net income doubled to $1.51 billion as fixed-income trading revenue nearly tripled.
Like JPMorgan Chase (JPM) and Bank of America (BAC) , which reported fourth-quarter earnings on Friday, the New York bank benefited from a surge in global trading as Trump’s policy pledges prompted speculation that imminent tax cuts and higher government spending will spur faster inflation.
