Morgan Stanley reported Wednesday that it had returned to profitability in Q-3. The New York-based bank holding company said it earned US$498M or 38 cents a share, beating the Street’s expectations. Earnings from continuing operations were US$757M in Q03 after a loss of US$159 in Q-2 Y 2009. Net revenue in Q-3 was US$8.7B compared with US$18B in Q-3 Y 2008. The bank said revenue in the most recent quarter was lower in part because of a continued improvement in debt-related credit spreads that reduced sales and trading revenue. “Morgan Stanley continued to build momentum across our business this quarter,” the chairman and chief executive, John J. Mack, said in a statement. “We still have work to do in sales and trading.” Shares of Morgan Stanley, which had reported per-share losses for three straight quarters before Wednesday, rose more than 6% in morning trading in the New York Stock Exchange.
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