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Morgan Stanley Surpasses Estimates, Reports Sky-High Wealth Management Revenue

Morgan Stanley reported its second-quarter earnings and revenue on Tuesday, surpassing analysts’ estimates and achieving record-breaking results in its wealth management division.

The company’s earnings were $1.24 per share, which may not directly compare to the Refinitiv estimate of $1.15 per share. Additionally, its revenue stood at $13.46 billion, exceeding the expected $13.08 billion.

Despite a 13% decline in profit to $2.18 billion (equivalent to $1.24 per share) due to lower trading results and severance costs, the bank’s revenue increased by 2% to reach $13.46 billion.

Related: Wells Fargo Boosts Tesla’s Price Target Ahead of 2Q Earnings Release

CEO James Gorman stated in a release, “The firm delivered solid results in a challenging market environment. The quarter started with macroeconomic uncertainties and subdued client activity, but ended with a more constructive tone.”

Despite lower market levels impacting some fees, the wealth management division experienced a remarkable 16% increase in revenue to $6.66 billion during the second quarter. This growth can be attributed to higher interest income and exceeded the estimated $6.5 billion provided by analysts surveyed by FactSet.

Equities trading generated $2.55 billion in revenue, surpassing the $2.37 billion FactSet estimate. However, fixed income generated $1.72 billion, falling short of the estimated $1.99 billion.

JPMorgan Chase, Citigroup, and Wells Fargo also reported earnings that exceeded analysts’ expectations due to higher interest rates.

Ravi Bora
Ravi Bora
Ravi Bora is a financial blogger with a keen eye for market trends. With a passion for finance, investments, the stock market, and cryptocurrencies, he brings a wealth of knowledge to his reporting.

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