How Morgan Stanley more than doubled its profit since last year

Billy Ehrenberg
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Morgan Stanley posted consensus busting second quarter results (Source: Getty)

Morgan Stanley has beaten both analyst expectations and its main competitors as its second quarter results showed a huge surge in profits - 132 per cent - compared to the same period last year.

Citigroup, JP Morgan Chase and Bank of America all recorded lower second-quarter profits, but Morgan Stanley's was up on the first three months of the year due in part to the performance of its wealth management and investment banking operations.

The results also show revenue of $8.61bn for the second quarter, up one per cent on forecasts, and with earnings per share at $0.60. Analysts had foreseen revenue of $8.19bn and earning per share of $0.56.

A one per cent increase in revenue equates to around $400m, and, coupled with a 132 per cent surge in profits compared to 2013, the numbers look quite rosy. Net income for the quarter was $1.86bn - earnings-per-share of 94 cents.

The real story is the success of Morgan Stanley's shift towards wealth management. Revenues from that operation increased to $3.7bn from $3.5bn over the quarter as the bank continued to move focus away from more volatile interests.

Shares in Morgan Stanley had risen 0.46 per cent in early trading.

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