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Morgan Stanley’s second-quarter profit rose as its investment-banking business recovered on strength in equity and debt underwriting.
The bank’s shares were still down 2% in choppy pre-market trading as asset management revenue rose slightly after driving growth through much of 2022 and 2023.
Revenue from the division rose to $6.8 billion from $6.7 billion a year earlier, roughly in line with Wall Street expectations, according to LSEG data. Net new assets in the quarter were $36 billion.
Bank of America profits fall on lower interest income, outlook lifts stocks
But the bank said Tuesday that net income rose to $3.1 billion, or $1.82 per share, for the three months ended June 30. That was up from $2.2 billion, or $1.24 per share, in the same period a year earlier.
“We delivered another strong quarter amid improving capital market conditions,” CEO Ted Pick said in a statement.
After nearly two years of slumping earnings, Wall Street is seeing a surge in corporate takeovers, bond sales and initial public offerings amid a brighter economic outlook, hopes of cuts in U.S. interest rates and soaring stock prices.
Global investment banking revenue rose 17 percent in the first half to $41.6 billion, according to Dealogic data.
Morgan Stanley’s investment banking revenue rose 51% in the second quarter to $1.62 billion.
Within the business, equity underwriting revenues surged 56% to $352 million and debt underwriting revenues soared 71% to $675 million. Advisory revenues also grew 30% to $592 million.
Goldman Sachs profits surge on strong debt underwriting, bond trading
Goldman Sachs, JPMorgan Chase and Citi also reported strong investment-banking revenues.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| GS | Goldman Sachs Group | 492.23 | +12.35 | +2.57% |
| JPM | JPMorgan Chase | 210.05 | +5.11 | +2.49% |
| C | Citigroup Inc. | 65.14 | +0.62 | +0.96% |
Morgan Stanley, under former CEO James Gorman, has grown into a wealth-management powerhouse that generates more stable revenue than more volatile businesses like investment banking and trading. It aims to manage $10 trillion in client assets.
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The bank’s institutional securities division said second-quarter revenue rose to $7 billion from $5.7 billion a year earlier.
Morgan Stanley’s total revenue rose about 12% in the quarter to about $15 billion.
