Morgan Stanley (MS) Q2 2024 Earnings

• Earnings: $1.82 per share vs. $1.65 per share according to LSEG estimates
• Revenue: $15.02 billion vs. $14.3 billion estimated

The bank said profit rose 41% from a year earlier to $3.08 billion, or $1.82 a share, helped by a rebound in Wall Street activity. Revenue rose 12% to $15.02 billion.

Morgan Stanley benefited from its Wall Street-centric business model in the quarter, as a recovery in trading and investment banking helped the bank’s institutional securities division generate more revenue than its wealth management division, reversing the usual dynamic.

Equity trading revenue rose 18% to $3.02 billion, beating StreetAccount’s estimate of about $330 million. Fixed-income trading revenue rose 16% to $1.99 billion, beating estimates of about $130 million.

Investment banking revenue rose 51% to $1.62 billion, beating estimates by about $220 million, driven by higher fixed-income underwriting activity. Morgan Stanley said that was primarily due to debt raising by non-investment-grade companies.

But results at the bank’s wealth management business were disappointing. Revenue rose 2% to $6.79 billion, missing estimates of $6.88 billion.

While the division’s revenues rose thanks to higher stock market levels, interest income fell 17% year-over-year to $1.79 billion.

Morgan Stanley said this was because its wealthy clients continued to shift money into higher-yielding assets, thanks to the interest rate environment, which led to lower deposit levels.

The bank’s shares fell 2.7% in pre-market trading.

“The company delivered another strong quarter amid an improving capital markets environment,” CEO Ted Beck said in the statement. “We continue to execute on our strategy and remain well positioned to deliver growth and long-term value for our shareholders.”

Last week, JPMorgan Chase, Wells Fargo and Citigroup all beat expectations on revenue and earnings, a streak that continued on Monday by Goldman Sachs, helped by a rebound in Wall Street activity.

This story is under development. Please check back for updates.