Morgan Stanley and Goldman Sachs report contrasting results for 2014 Q1

Morgan Stanley and Goldman Sachs have reported contrasting results for the first quarter of 2014.

Goldman Sachs’ neat earnings fell to $2.03 billion from $2.26 billion after a drop in revenues from its bonds, currency and trading business.

However, Morgan Stanley’s profit rose to $1.45 billion, compared with $981 million a year ago.

Revenues rose in all of its three business segments.

Goldman Sachs makes most of its money from trading and investing in capital markets.

In the first quarter, its revenue from fixed income, currency and commodities trading fell 11% to $2.85 billion compared with a year earlier.

“We are generally pleased with our performance for the quarter, given the operating environment,” said Goldman Sachs’ chief executive, Lloyd Blankfein.

“Market sentiment shifted throughout the quarter, constraining client activity in various parts of our franchise,” he said.

Investment banking and investment management “generated solid results”, he added.

The bank’s net revenues from investment banking were $1.78 billion, 13% higher than the first quarter of 2013.

Its financial advisory service saw 41% higher net revenues, of $682 million.

Goldman Sachs’ results follow a big drop in profits in the fourth quarter last year.

Morgan Stanley’s trading, mergers and acquisition advisory and stock sales division grew the most during the first quarter.

The division, called institutional securities, earned $1.2 billion, compared with $1.1 billion last year.

Earnings for its wealth management division were $691 million, compared with $597 million a year ago, and investment management income jumped to $263 million from $187 million.

Morgan Stanley’s strong results come after a fourth-quarter reduction in bond trading revenue that more than halved its earnings.