Morgan Stanley announced Financial Results in the First Quarter, profit increased by 74%

On Wednesday, Morgan Stanley (NYSE: MS) announced its financial results for the first quarter quarter ended March 31, 2017, with both revenues and profits increasing. Shares of the company increase 3% in morning trading Wednesday.

According the the company, for the first quarter, the profit increase from $1.1 billion, or $0.55 per share in the same period last year to $1.8 billion, or $1 per share this year, beating analysts’ estimates of $0.88 per share. The jump in profit was thanks to the rise in revenue of investment banking and fixed income trading businesses. Net revenue increased 25% to $9.75 billion, also surpassing estimates of $9.27 billion.

In addition, return on equity, which is a measure of profitability, increased to 10.7% from 8.7% in the last quarter, and rose 6.2% from the same period last year. The results beat estimates of 9.75%, and James P. Gorman, the Chairman and Chief Executive Officer of Morgan Stanley, expected ROE to be between 9% to 11% in 2017.

“We reported one of our strongest quarters in recent years. All our businesses performed well in improved market conditions. We are confident in our business model and the opportunities ahead, while recognizing that the environment remains uncertain,” Gorman said in the statement.

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