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Wall Street bank Morgan Stanley's profit doubled in the last quarter of the year, far exceeding expectations, as trading activity surged following the U.S. presidential election.

Earnings applicable to common shareholders soared to $1.51-billion in the fourth quarter from $753-million a year earlier, while earnings per share increased to 81 cents from 39 cents, the bank said on Tuesday.

Analysts on average had expected a profit of 65 cents per share, according to Thomson Reuters I/B/E/S.

Bank stocks have rallied since the election, on the hope that the new Trump administration will usher in a new era of looser bank regulations along with economic growth. Story

DAILY DEALS

Saudi Arabia has promised it will reduce the overall tax rate paid by its national oil company to make its 2018 initial public offering – potentially one of the largest in history – more appealing to investors. Story

British American Tobacco PLC has agreed a $49.4-billion (U.S.) takeover of U.S. rival Reynolds American Inc., creating the world's biggest listed tobacco company after it increased an earlier offer by more than $2-billion. Story

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Tim Kiladze: Sentry shakeup, again: Prominent asset manager names new CEO Story

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