The results offer a big boost to Chief Executive John Mack, trying to help the bank recover from $9.4 billion in mortgage trading losses last year that eroded earnings and dented his reputation. It also delivers another jolt of good news to a market that had been prepared for bigger write-downs and signs that Wall Street firms were facing liquidity problems.
Morgan's income from continuing operations fell by about a third to $1.55 billion, or $1.45 a share, in the quarter ended Feb. 29, from $2.31 billion, or $2.17, in the year-earlier period. Quarterly revenue fell 17 percent to $8.3 billion.