Morgan Stanley returns to profit with earnings of 757 million dollars
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US banking giant Morgan Stanley posted third-quarter earnings of 757 million dollars after three straight quarterly losses. Improvements at its investment banking division helped the bank to swing back to profit.
AFP - Morgan Stanley posted Wednesday third-quarter earnings of 757 million dollars, swinging to profit on improved investment banking operations after three straight quarterly losses.
The profit amounted to 38 cents a share, well ahead of expectations of 27 cents a shares.
"Morgan Stanley continued to build momentum across our business this quarter, as we made important progress in executing key strategic initiatives," said chairman and chief executive John Mack, who will give up his CEO position in January.
"Our investment banking business delivered particularly strong results, ranking number one in global announced and completed M&A (mergers and acquisitions) and showing strong performance in underwriting for both debt and equity, where we ranked number in global IPOs (initial public offerings)."
Morgan Stanley and Goldman Sachs were the only two major Wall Street investment firms surviving the financial crisis last year, but both converted to commercial bank status to have better access to Federal Reserve credit.
Japan's Mitsubishi UFJ Financial Group took a stake in Morgan Staley to help it weather the credit crisis.
Morgan Stanley repaid the US government in June for a 10 billion dollar capital injection under a program to help stabilize the financial system.
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