Morgan Stanley’s profit rises on dealmaking, trading boost

the Morgan Stanley logo is displayed on its Times Square building in New York

Morgan Stanley reported a rise in first-quarter profit on Wednesday, buoyed by a dealmaking boost and a surge in revenue from its trading business.

The Wall Street investment bank’s profit rose to US$5.6 billion, or $3.43 per share for the latest three-month period, compared with $4.3 billion, or $2.60 per share, a year earlier.

After a bumper year for deals in 2025, top investment banks expect the M&A momentum to carry over this year as a friendlier regulatory environment could prompt cash-rich companies to bulk up their businesses through takeovers and mergers despite threats to the global economy from the Iran war.

Deal volumes globally have already hit $1.38 trillion in the latest first quarter, according to data compiled by Dealogic, after a near record-breaking 2025 in which global M&A surpassed $4.81 trillion.

Global markets have also swung sharply in recent weeks as an escalating U.S.-Israeli conflict with Iran drove up oil prices and fueled worries that inflation could stay elevated for longer.

The volatility across asset classes has prompted investors to rebalance portfolios and increase hedging against potential losses, a trend that typically boosts activity at trading desks.

Total quarterly revenue at Morgan Stanley rose to $20.6 billion in the first quarter from $17.7 billion a year earlier.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Anil D’Silva)