Morgan Stanley’s share price jumped three per cent in pre-market trading after the US bank beat expectations with its second quarter results.
Rounding off the big US bank reporting session, Morgan Stanley’s revenues came in at $9.5bn (£7.3bn), above the $9.1bn expected by analysts, and up six per cent from $8.9bn in the same period last year.
The firm’s earnings per diluted share, meanwhile, were reported at $0.87, above the $0.76 that was expected by analysts, according to a Yahoo Finance consensus.
At the time of writing, Morgan Stanley’s share price was up three per cent in pre-market trading to $45.14.
Why it’s interesting
Like its Wall Street rivals, Morgan Stanley acknowledged that the second quarter had been tough due to a “subdued trading environment”.
However, the bank generally fared better than others. Its fixed income trading revenue, for instance, was down four per cent to $1.2bn. This compares with a 40 per cent drop at Goldman Sachs.
Morgan Stanley performed well in other areas, such as wealth management, where its revenues were up nine per cent to $4.2bn.
What the company said
Chairman and chief executive James Gorman said:
Our second quarter results demonstrated the resilience of our franchise in a subdued trading environment. Our wealth management business produced a 25 per cent margin and our strong investment banking results attest to the diversity of our global business. We continue to deliver on our strategic goals and grow shareholder returns.