Morgan Stanley On Thursday, we announced second-quarter earnings and earnings that exceeded analysts’ expectations on the strength of equity trading and investment banking.
Here’s how to bank.
Revenue: $ 1.85 per share, analysts estimate $ 1.65 against Refinitiv.
Revenue: $ 14.8 billion, compared to an estimated $ 13.98 billion.
Rival banks reported a sharp slowdown in fixed income trading revenues, which also attracted Morgan Stanley fixed income traders, but the bank’s strength was traditionally in the world’s largest equity trading franchise.
The business outperformed in the second quarter and generated $ 2.83 billion in revenue. This is more than $ 400 million higher than analysts expected. It made up for the bond shortage and generated $ 1.68 billion in revenue, below an estimated $ 2 billion.
Wall Street equity trading flourished in the second quarter, and the wealth management business also benefited from high asset value and strong IPO activity. Another area of prosperity is investment banking, which is driven by strong merger activities and associated financing.
Like a rival Goldman Sachs, Morgan Stanley announced the results of its strong investment banking business, with $ 2.38 billion in revenues surpassing the $ 2.1 billion estimate.
As a result, the company’s institutional securities business, which operates trading and advisory services, generated revenue of $ 7.1 billion, about $ 350 million higher than expected.
However, two other major divisions of Newyork-based Morgan Stanley also exceeded expectations this quarter.
Backed by last year’s acquisition of E-Trade, the bank’s large-scale wealth management business generated $ 6.1 billion in revenue, surpassing the $ 5.9 billion estimate.
The company’s investment management division, partly helped by the acquisition of Eaton Vance last year, generated $ 1.7 billion in revenue, surpassing the $ 1.53 billion estimate.
Through a series of savvy acquisitions, Gorman has built a bank wealth management franchise and has become one of the largest banks in the world. He also assisted in the restoration of the company’s trading operations and maintained its key merger advisory practices.
“We have achieved a very strong quarter with contributions from all our businesses,” Gorman said in a release. “We have announced a $ 12 billion repurchase to double dividends and return surplus capital to shareholders with a transformed business model that provides more stable and durable earnings. Our global franchise has announced a repurchase of $ 12 billion. Very suitable for driving further growth. “
Bank stocks fell 1.1% in pre-market trading amid a broader sale. Prior to Thursday, Morgan Stanley shares rose 35% this year, compared to a 26% rise in the KBW Bank Index.
Morgan Stanley is the last of the six largest US banks to report second-quarter earnings.
JP Morgan Chase, Bank of America, Wells Fargo And Citigroup By releasing the money previously set aside for the loss of the loan, everything exceeded analysts’ expectations of profit. Goldman surpassed the estimate of strong advisory results.
This story is developing. Check for updates.
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