Morgan Stanley (NYSE:MS) reported fourth quarter earnings that beat forecasts as its wealth management revenue rose to a record.
Earnings per share (EPS) rose to 84 cents in the quarter ended December 31, excluding a US$900mln hit resulting from recent changes to US tax law.
It compared to 74 cents in the year-ago period and analysts’ expectations of 77 cents.
Including a one-off charge of US$1.0bn for the tax changes, EPS was 29 cents.
Revenue rose to US$9.5bn from US$9.0bn a year ago, ahead of estimates of US$9.2bn.
Wealth management revenues rose to a record US$4.4bn from US$4.0bn a year ago while investment banking increased to US$1.4bnb from US$1.3bn.
Looking ahead, the company expects to benefit from Donald Trump’s tax reform, which includes cutting the corporate tax rate to 21% from 35%.
“We enter 2018 with strong momentum aided by rising interest rates, tax reform and an evolving regulatory framework,” said chief executive James Gorman.
Shares climbed 0.62% to US$55.69 each.