Morgan rides the Yield Curve, taking 1.8 Billion in Earnings

More of this from all financials expected.  Strong earnings reported at Morgan Stanley due to super steep yield curve.  Yes,  it is a good time to be in the financials.  What a difference a year makes.

Just as an FYI, the MSM is reporting 1.41BB in income.  I don't know where they got that number, but you can follow my numbers straight back to the Morgan itself.  

Some highlights from the Morgan Stanley release:
Morgan Stanley (NYSE: MS) today reported income of $1.8 billion, or $1.03 per diluted share, from continuing operations applicable to Morgan Stanley for the first quarter ended March 31, 2010, compared with a loss of $17 million, or $0.41 per diluted share, for the same period a year ago. Net revenues were $9.1 billion for the current quarter, compared with $2.9 billion a year ago.

Business Highlights

Investment banking revenues were $887 million, compared with $811 million last year, reflecting an increase in underwriting revenues driven by higher levels of market activity. Morgan Stanley ranked #2 in completed M&A, #4 in global announced M&A and #3 in global IPOs.

Sales and trading net revenues were $4.1 billion, compared with $1.4 billion last year. The increase reflected the effect of the improvement in Morgan Stanley's debt-related credit spreads1 in the prior year, as well as higher results in Fixed Income.

Global Wealth Management delivered net revenues of $3.1 billion, with client assets of $1.6 trillion and 18,140 global representatives. Net new assets for the quarter were $5.8 billion. The Firm led the industry with 38 of the 100 top financial advisors in this year's annual Barron's survey, including 9 of the top 15.

Asset Management reported net revenues of $653 million, compared with $22 million a year ago.

Morgan Stanley and Mitsubishi UFJ Financial Group, Inc. (MUFG) entered into definitive agreements formalizing their previously announced intention to form a joint venture. The transaction is scheduled to close in the second quarter of 2010.


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