Morgan Stanley tops Q2 estimates with record revenue and profit

Morgan Stanley (NYSE:MS) reported record second quarter revenue and profit that topped Wall Street expectations on Wednesday, driven by strength across its institutional securities, wealth management and investment management businesses.

The bank posted earnings per diluted share of $3.46 on net revenue of $21.35 billion for the quarter ended June 30, exceeding analysts' expectations of $2.93 per share on revenue of $19.63 billion. A year earlier, Morgan Stanley (NYSE:MS) reported earnings per share of $2.13 on revenue of $16.79 billion.

Net income attributable to Morgan Stanley (NYSE:MS) rose to $5.58 billion from $3.54 billion a year earlier, while return on tangible common equity increased to 26.6% from 18.2%.

Institutional Securities generated record revenue of $11.04 billion, up from $7.64 billion a year earlier. Investment banking revenue climbed to $2.44 billion from $1.54 billion, while equities revenue surged to $6.30 billion from $3.72 billion. Fixed income revenue increased to $2.46 billion from $2.18 billion.

Wealth Management reported record revenue of $8.86 billion, compared with $7.76 billion a year earlier. The division attracted a record $148.1 billion in net new assets during the quarter, while total client assets across wealth and investment management reached $10 trillion.

Investment Management revenue rose to $1.65 billion from $1.55 billion a year earlier, supported by higher average assets under management, which increased to $2.0 trillion from $1.71 trillion. Long-term net inflows totaled $7.5 billion during the quarter.

Morgan Stanley (NYSE:MS) 's standardized Common Equity Tier 1 capital ratio stood at 14.8% at quarter-end, while its expense efficiency ratio improved to 65% for the first half of the year from 71% a year earlier.

Morgan Stanley CEO Ted Pick highlighted broad-based strength across the firm's operations, noting record revenue of more than $21 billion and record earnings per share.

He also pointed to continued momentum in investment banking, strong performance in equities and fixed income, and record net new assets in wealth management.

"We continue to accrete capital, giving us incremental flexibility to invest in our core businesses while generating strong returns for shareholders," Pick said.

Shares of Morgan Stanley were little changed following the results.

Sinergia Empresarial continuará el seguimiento de esta información sobre morgan Stanley tops Q2 estimates with record revenue and profit y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.