Morgan Stanley mentioned second-quarter revenue and income topped analysts’ estimates on stronger-than-expected buying and selling and funding banking outcomes.
This is what the corporate reported:
- Earnings: $1.82 a share vs. $1.65 a share LSEG estimate
- Income: $15.02 billion vs. $14.3 billion estimate
The financial institution mentioned revenue surged 41% from the year-earlier interval to $3.08 billion, or $1.82 per share, helped by a rebound in Wall Avenue exercise. Income rose 12% to $15.02 billion.
Morgan Stanley benefited from its Wall Avenue-centric enterprise mannequin within the quarter, as a rebound in buying and selling and funding banking helped the financial institution’s institutional securities division earn extra income than its wealth administration division, flipping the same old dynamic.
Fairness buying and selling generated an 18% bounce in income to $3.02 billion, exceeding the StreetAccount estimate by about $330 million. Fastened revenue buying and selling income rose 16% to $1.99 billion, topping the estimate by $130 million.
Funding banking income surged 51% to $1.62 billion, exceeding the estimate by $220 million, on rising fastened revenue underwriting exercise. Morgan Stanley mentioned that was primarily pushed by non-investment-grade firms elevating debt.
However leads to the financial institution’s wealth administration underwhelmed. Income rose 2% to $6.79 billion, lacking the $6.88 billion estimate.
Whereas the division’s income rose due to greater inventory market ranges, curiosity revenue plunged 17% from a 12 months earlier to $1.79 billion.
Morgan Stanley mentioned that is as a result of its wealthy purchasers had been persevering with to shift money into higher-yielding property, due to the speed surroundings, which resulted in decrease deposit ranges.
Shares of the financial institution fell 3.4% in premarket buying and selling.
“The agency delivered one other sturdy quarter in an enhancing capital markets surroundings,” CEO Ted Choose mentioned within the launch. “We proceed to execute on our technique and stay effectively positioned to ship development and long-term worth for our shareholders.”
Final week, JPMorgan Chase, Wells Fargo and Citigroup every topped expectations for income and revenue, a streak continued by Goldman Sachs on Monday, helped by a rebound in Wall Avenue exercise.
This story is creating. Please examine again for updates.
