Morgan Stanley (NYSE:MS) hit new high after the global financial services company declared a fourth-quarter profit, lifted by strong results in its wealth-management unit as well as better performance as compared to its stock traders and investment bankers.
Morgan Stanley (MS) marked a profitability target in its major brokerage segment, providing the company’s investors a long-awaited boost and helped Chairman and Chief Executive James Gorman score a much-needed victory.[article_detail_ad_1]
The company posted fourth quarter adjusted income from continuing operations of $0.45 per share in comparison with the loss of $0.20 per share in the same period last year. The mean forecast was for EPS of $0.27. Net revenues rose to $7.5 billion as compared to last year’s $5.5 billion, beating the consensus estimate of $7.02 billion in revenue.
Elsewhere in the banking sector, Deutsche Bank AG (USA) (NYSE:DB) was likely to remain under pressure on Tuesday after a report released by Reuters claimed that U.S. electricity regulators are on track to put a $1.5 million penalty on its subsidiary over alleged power market manipulation. Deutsche Bank (DB) has rejected The Federal Energy Regulatory Commission’s (FERC) charge that it maneuvered the market by intentionally losing money on physical transactions to profit in derivative markets.
Bank of America Corp (NYSE:BAC) continued to fall after its fourth-quarter earnings declined as it cleaned up old problems from its mortgage unit. For last three months of 2012, the giant bank made $367 million or 3 cents per share after paying preferred dividends, lower as compared to $1.6 billion in the similar quarter a year ago.
The Fannie Mae settlement dragged down revenue to $19.6 billion after stripping out an accounting charge, lower when compared with $26.4 billion in the same period a year ago. Analysts believed that it was another quarter of sacrificed earnings as the bank works through its distressed mortgage business.
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