Morgan Stanley (stock code: MS) exceeded expectations in its first-quarter profit, benefiting from the recovery of its investment banking business and growth in wealth management. The company's stock price rose by 3.7%.

Growth in Investment Banking Business

Morgan Stanley's investment banking revenue increased by 16% year-on-year, driven by an increase in bond issuance and strong performance in fixed-income underwriting for two consecutive quarters. CEO Ted Pick stated that the investment banking business currently has strengthened momentum in mergers and underwriting, anticipating a multi-year merger cycle lasting 3 to 5 years.

Enhancement in Wealth Management Division

The company's wealth and investment management division benefited from the increase in client assets, with wealth management revenue rising from $6.6 billion last year to $6.9 billion. New assets increased to $95 billion, with approximately half coming from family offices.

Regulatory Checks and Market Outlook

Despite facing stricter regulatory scrutiny in the wealth management division, CEO Ted Pick emphasized that the client onboarding process is "not new" and stated that the company has been focusing on client onboarding and monitoring processes. Chief Financial Officer Sharon Yeshaya noted that this investigation did not result in any changes to the wealth management business strategy.