Morgan Stanley posted second-quarter earnings on Thursday that surpassed Wall Street expectations for revenue and earnings per share.
At the same time, equities-trading revenue tumbled 14%, the worst of any major Wall Street bank. Overall sales-and-trading revenue dropped by 12% on a weaker quarter for Morgan Stanley's financing business and lower client balances.
Investment-banking revenue fell by 13% from the same period last year because of fewer advisory deals and slower market volume.
Here are the key numbers:
- Revenue: $10.24 billion, versus $9.99 billion expected
- Net income: $2.2 billion, versus $1.94 billion expected
- Earnings per share: $1.23, versus $1.14 expected
- Equities-trading revenue: $2.13 billion versus $2.27 billion expected
- Fixed-income-trading revenue: $1.13 billion versus $1.29 billion expected
- Net interest income: $1.03 billion versus $991.6 million expected
The firm's wealth-management business posted a record pretax income of $1.2 billion on $4.4 billion in revenue.
"We reported solid quarterly results across all our businesses," James Gorman, the chief executive officer of Morgan Stanley, said in a letter to shareholders. "Firmwide revenues were over $10 billion and we produced an ROE within our target range, demonstrating the stability of our franchise."
The bank also increased its dividend by $0.35 a share and announced it would buy back up $6 billion in stock by the second quarter of 2020.
Morgan Stanley was up 10% year-t0-date through Wednesday.