Morgan Stanley profits rose 35% for the first quarter to $1.23bn (€1bn) driven by record fixed income sales and trading revenues of $1.7bn and a 150% increase in equity underwriting revenues.

The results, which echo those at Wall Street rival Lehman Brothers, saw net income for Morgan Stanley's first quarter, ending February 29 2004, rise 35% from the same period last year and 21% from the fourth quarter. Net revenues were $6.2bn, 14% ahead of the first quarter of 2003.