Morgan Stanley (MS) has reported a 41% surge in its second-quarter profit due to a rebound in investment banking activity that includes initial public offerings (IPOs).
The Wall Street firm reported Q2 earnings per share (EPS) of $1.82 U.S. compared to $1.65 U.S. that had been the consensus forecast of analysts.
Revenue in the April through June quarter totaled $15.02 billion U.S. versus $14.30 billion U.S. that had been estimated on Wall Street.
The bank said its profit surged 41% from a year earlier due to a rebound in deals that also include mergers and acquisitions (M&A). Revenue rose 12% from a year ago.
Other bright spots during Q2 included trading activity and growth in Morgan Stanley’s wealth management division.
The bank said that its stock trading revenue grew 18% in the quarter while fixed income trading increased by 16%.
However, the real standout was investment banking revenues, which surged 51% to $1.62 billion U.S., exceeding Wall Street estimates by $220 million U.S.
In its earnings statement, Morgan Stanley’s new chief executive officer (CEO) Ted Pick, who took the helm of the bank at the start of 2024, said: “We continue to execute on our strategy and remain well positioned to deliver growth and long-term value for our shareholders.”
Morgan Stanley’s stock has risen 22% over the last 12 months and currently trades at $105.26 U.S. per share.
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