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.
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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.
