Investment bank Morgan Stanley closed the first quarter of 2021 with a record profit of $ 4,120 million (3,437 million euros), which is equivalent to multiplying by 2.4 the gains recorded in the same period of the previous year, according to It emerges from the quarterly accounts that the entity has published this Friday.
The firm also recorded a record turnover of 15,719 million dollars (13,115 million euros), 61% more, thanks to the dynamism experienced by the stock markets in the last year.
In addition, the accounts are also affected by the acquisitions of Eaton Vance, completed on March 1, 2021, and of ETrade, completed in the fourth quarter of 2020.
“The firm achieved record results. The integrated investment banking division continues to thrive,” said Morgan Stanley President and CEO James Gorman.
Of the total income, commissions (for stock trading, asset management or investment banking) contributed to the group 13,691 million dollars (11,423 million euros), 63% more than in the first quarter of 2020. On their side, net interest income was 2,028 million (1,692 million euros), 50% more.
Like the rest of the large US entities, Morgan Stanley has decided to reduce its provisions against credit defaults by 98 million dollars (81.8 million euros) due to the improvement of the country’s economic prospects. This amount has positively impacted the accounts, while in the same quarter of 2020 the bank recorded a negative charge of 407 million (339 million euros) for these same provisions.
Employee compensation grew 59% in the first quarter compared to a year earlier, to $ 6,798 million (€ 5,672 million). On the other hand, the costs of brokerage, clearing and settlement of securities were 910 million (759 million euros), 23% more, while those of information and communications advanced 30%, up to 733 million (611 million euros).