[ad_1]
Morgan Stanley’s revenue rose in the second quarter as its investment banking and wealth management divisions picked up a bit from the slowdown in the slowdown in operations.
The Wall Street bank reported revenue of $ 14.8 billion, up 8% from $ 13.7 billion a year earlier and ahead of analysts ’estimates of $ 14 billion, according to data compiled by Bloomberg. This quarter’s earnings were flattered by the recent integration of the online trading platform ETrade and money manager Eaton Vance, which Morgan Stanley acquired last year.
Morgan Stanley’s earnings per share reached $ 1.85, below $ 1.96 per share a year earlier. Net income was $ 3.5 billion, up from $ 3.2 billion the previous year.
Morgan Stanley benefited from higher commissions in investment banking, though slightly less than rivals JPMorgan Chase and Goldman Sachs, which reported gains on Tuesday.
Second-quarter revenue for Morgan Stanley from investment banking, which includes advice on business mergers, as well as equity and debt subscription, reached $ 2.4 million, a 15.8 % more than a year ago. Analysts had expected $ 2.65 billion.
Compared to, JPMorgan and Goldman reported year-on-year gains in investment banking commissions of 25% and 36%, respectively.
The biggest gains in investment banking came in its financial advisory division, compared to the equity subscription, which is the largest part of Morgan Stanley’s franchise.
Wall Street banks have shifted their approach to hiring amid rising mergers and acquisitions to offset the slowdown in business activity from its frantic pace to the start of the pandemic. Morgan Stanley posted $ 4.7 billion in sales and business operations in the second quarter, down 23% year-over-year, but ahead of market estimates of $ 4.4 billion.
Revenue from Morgan Stanley’s institutional securities division, which houses investment banking and commerce, fell 13.5% year-on-year to $ 7.1 billion. Estimates were $ 6.6 billion.
In contrast, revenue for wealth management – an area that Morgan Stanley has seemed to grow in recent years and now contains ETrade – rose 29.6 percent in the quarter to 6.1 million. dollars, up from $ 4.7 million a year earlier. This was slightly ahead of analysts ’estimates by $ 5.9 billion.
In investment management, revenue rose to $ 1.7 billion from $ 886 million the previous year, bolstered by the integration of Eaton Vance.
Within wealth management, loans to wealthy clients grew year-over-year to $ 114.7 billion, from $ 85.2 billion a year ago. It highlights a trend on Wall Street, as opposed to lending to wealthy customers dying loan growth for retail and corporate clients.
“We have historically seen very minimal losses in this line of products. It resonates with our customers, ”Morgan Stanley Chief Financial Officer Sharon Yeshaya told the Financial Times.
At rival JPMorgan, average second-quarter lending within its asset and wealth management business rose 21% year-over-year to $ 195 billion. For the bank in general, loans were generally flat at $ 1 billion. Total lending was fixed at Bank of America in the second quarter, but lending rose 18% within its global wealth and investment management unit.
Shares of Morgan Stanley fell 1.3% in pre-market trading.
[ad_2]
Source link
