Morgan Stanley reported a smaller than expected drop in Q1 profit as strength in the bank’s sales and trading businesses easily offset writedowns on mortgage-related assets and leveraged loans. The results beat those of rival, Goldman Sachs, and gave a boost to John Mack, chief executive, who has been criticised by some shareholders. Morgan Stanley executives on Wednesday echoed Tuesday’s comments from Lehman and Goldman, saying the bank’s liquidity position remained strong. Morgan Stanley said it earned $1.55bn, or $1.45 per share, in the quarter, down 33% from $2.31bn last year but ahead of predictions of $1.03 per share in profits. Goldman on Tuesday reported a 53% Q1 profit decline to $1.51bn which, together with Lehman’s results, helped Wall St breathe a “huge sigh of relief”, notes the FT in a separate analysis. Also see FT.com’s in-depth report on Q1 US investment bank earnings.

This entry was posted by Gwen Robinson on Thursday, March 20th, 2008 at 5:51 and is filed under Capital markets. Tagged with morgan stanley. Edit this entry.