Morgan Stanley trumps Q2 forecasts amid strong trading activity
The Wall Street giant reported EPS of $2.13, ahead of the consensus estimate of $1.98. Revenue rose to $16.8 billion, above the $16.01 billion expected by analysts.
Institutional Securities generated $7.6 billion in revenue, driven by elevated client activity and particularly strong performance in Equities.
Wealth Management delivered $7.8 billion in net revenue, with a pre-tax margin of 28.3%, supported by robust asset management income and higher client engagement.
Investment Management posted $1.6 billion in net revenue, largely from asset management fees on higher average AUM. The unit also recorded $11 billion in positive long-term net flows.
In trading, equities revenue soared 23%, and rose 9% in fixed income, the report revealed.
Return on tangible common equity (ROTCE) stood at 18.2% for the quarter and 20.6% for the first half of the year. The bank's expense efficiency ratio was 70%, supported by scale and disciplined cost controls.
Its standardized CET1 capital ratio was reported at 15.0%.
Chairman and CEO Ted Pick noted the firm's consistent earnings delivery across different market conditions, highlighting a six-quarter streak of solid performance. 'Morgan Stanley delivered another strong quarter,' Pick said.
'Institutional Securities saw strength and balance across businesses and geographies. Wealth continues to deliver, adding $59 billion of net new assets and $43 billion of fee-based flows.'
The firm announced an increase in its quarterly dividend, raising it to $1.00 per share.
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