Morgan Stanley share price up three per cent as it beats expectations by holding up in "subdued trading environment"

 
William Turvill
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Morgan Stanley Reports Q2 Earnings More Than Double From Year Before
Morgan Stanley has completed the second quarter US bank reporting session (Source: Getty)

Morgan Stanley’s share price jumped three per cent in pre-market trading after the US bank beat expectations with its second quarter results.

The figures

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.

Read more: Goldman Sachs results exceed expectations but share price slips

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.

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