Morgan Stanley share price rises in pre-market trading as bank beats analyst expectations with fourth-quarter profit

 
Lauren Fedor
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Morgan Stanley beat analyst expectations when it reported a fourth-quarter profit this morning, thanks to lower legal costs and compensation expenses.

The Wall Street bank exceeded analysts’ expectations for both earnings and revenue, reporting 43 cents a share in profit on $7.9bn (£5.54bn) of revenue. Analysts had expected a quarterly profit of 33 cents a share on $7.59bn of revenue, according to consensus compiled by Thomson Reuters.

Morgan Stanley's shares rose about 3.5 percent in pre-market trading following the results announcement.

The bank said that its total non-interest costs had fallen 41 percent in the fourth quarter after it cut jobs in its trading business.

Compensation costs in particular fell 28.5 per cent to $3.65bn.

"We enter 2016 with a continued focus on managing expenses across the firm and driving up returns for our shareholders," the bank's chief executive, James Gorman, said in a statement.

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