Three of Wall Street’s biggest brokerage firms–Goldman Sachs Group Inc., Morgan Stanley and Lehman Brothers Holdings Inc.–posted increases in first-quarter profits Thursday, thanks mainly to a jump in fixed-income trading.
Goldman Sachs said its net income rose 26 percent, to $662 million, or $1.29 a share, from $524 million, or 98 cents a share, in the year-ago period. The result easily surpassed analysts’ estimates of 96 cents a share.
Net revenue, or total revenue minus interest expense, rose 16 percent, to $4.19 billion. Net revenue in Goldman’s fixed-income, currency and commodities trading unit hit a quarterly record of $1.88 billion, up 54 percent from a year ago.
Lehman Brothers said its net income rose to $301 million, or $1.15 a share, beating analysts’ estimates of 97 cents a share. A year ago, Lehman earned $298 million, or 99 cents a share.
Net revenue increased 7 percent, to $1.71 billion, but net revenue for bond trading climbed 31 percent, to a quarterly record $891 million.
At Morgan Stanley, first-quarter profits rose 7 percent, driven by fixed-income gains in its institutional securities operations and growth in its credit card business.
Morgan Stanley reported net income of $905 million, or 82 cents a share, up from $848 million, or 76 cents a share, a year ago. Analysts had expected per-share earnings of 62 cents for the latest quarter.
Net revenue rose 4 percent, to $5.48 billion. Trading revenue increased 5 percent, to $977 million. Revenue from its credit card unit jumped 9 percent, to $898 million.
However, all three firms continue to be dogged by weak stock underwriting and merger advisory activity, which help drive investment banking revenue.
