Morgan Stanley Q2 earnings top expectations

Morgan Stanley's second-quarter earnings beat expectations on Wednesday thanks to a strong performance from its investment banking and wealth management divisions.

Earnings per share for the quarter to the end of June came in at $0.87 versus $0.75 in the same period a year ago, surpassing estimates of $0.76. Meanwhile, net revenues rose to $9.5bn from $8.9bn a year ago, coming in ahead of expectations of $9.1bn.

Net revenues in the wealth management business came in at $4.2bn, up from $3.8bn the year before, while revenue in the investment banking arm increased to $1.4bn from $1.1bn.

Institutional securities net revenues rose to $4.8bn from $4.6bn a year ago, reflecting strength in equity sales and trading and M&A advisory, and improved results in underwriting, while investment management net revenues increased to $665m from $583m.

However, sales and trading net revenues slipped to $3.2bn from $3.3bn.

Chairman and chief executive officer James P. Gorman said: "Our second quarter results demonstrated the resilience of our franchise in a subdued trading environment. Our wealth management business produced a 25% margin and our strong investment banking results attest to the diversity of our global business. We continue to deliver on our strategic goals and grow shareholder returns.”

At 1245 BST, the shares were up 2.4% in pre-market trade at $46.23.