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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Morgan Stanley and Goldman Sachs 8217 profits soar

Article By: ,  Financial Analyst
October 17, 2014 5:15 PM

US investment bank Morgan Stanley has posted an 87 per cent rise in profits to $1.65 billion (£1 billion) in the third quarter of the year. The bank's total revenue for the quarter rose 12 per cent to $8.91 billion.

Trading of currencies, commodities and bonds was a big driver of profits, as was wealth management, the BBC reports.

Bond trading revenues were up 19.4 per cent to $997 million, while wealth management revenue rose nine per cent to $3.79 billion.

"We are well positioned to create superior returns for our shareholders, particularly as the US economy continues to strengthen," chief executive James Gorman said in a statement.

Shares rose 3.7 per cent in premarket trading as results beat analyst estimates.

On Thursday, rival bank Goldman Sachs reported a 50 per cent rise in profits. Its earnings rose to $2.24 billion, or $4.57 a share, compared with $1.52 billion, or $2.88 a share, in the period a year earlier. 

The bank’s total net revenue rose 25 per cent, to $8.39 billion, outpacing the $7.8 billion anticipated by analysts, the New York Times report.

Several other big banks posted their profits this week, with Bank of America reporting on Wednesday a smaller-than-expected loss for the third quarter of the year, with a loss of one cent a share.

Revenue for the quarter came in at $21.21 billion, against the comparable year-ago figure of $21.53 billion.

A pickup in profits from trading helped balance a $5.6 billion payment to the US government to settle accusations it sold flawed mortgage securities before the 2008 crisis.

On Tuesday, JP Morgan reported a profit of $5.6 billion for the quarter. The bank posted a total revenue for the quarter of $25.2 billion, up five per cent on a year earlier.

In addition, Citigroup Inc reporting a 13 per cent rise in adjusted net profit, while Wells Fargo reported a 1.7 per cent increase in net earnings.

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