Sina US Stock News, January 16 Morgan StanleyThe performance of the fixed income business exceeded analysts' expectations, and along with other peers in the industry, it made a strong comeback.

Morgan Stanley announced a sharp increase in bond trading revenue and raised its profit target for the next two years, and the company's stock price rose significantly. Fixed income trading revenue more than doubled and boosted full-year profit to an all-time high. In terms of M&A consulting and stock and bond underwriting, the company's performance also surpassed analysts' expectations.

The major banks that have been affected by the continued downturn in the fixed income market for many years received a respite in the fourth quarter of 2019. Investors originally anticipated that performance would rebound from a particularly poor performance in the fourth quarter of 2018, and Wall Street banks were not disappointed. At Morgan Stanley, that figure grew 126% to $1.27 billion. Analysts surveyed had previously anticipated a 67% increase.

“Generally in the fourth quarter, there will be a slight slowdown after Thanksgiving, but we have not seen this,” Chief Financial Officer Jonathan Pruzan said in an interview. “Entering 2020, the market background is quite constructive, and the future is healthy.”

The bank said it is committed to achieving a return on tangible common stock equity of 13%-15% and a long-term target of 15% to 17% over the next 2 years. The target set for the past two years is 11.5%-14.5%.

The stock price of Morgan Stanley surged 29% last year, and was 5.9% higher in early trading in New York to 56.05 US dollars, the highest level since March 2018.