Morgan Stanley just reported second quarter earnings that beat on the top and bottom lines. The firm lost 144 advisers in the past quarter alone, according to its second-quarter earnings report released Monday.
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Morgan Stanley China A Share Fu has dropped 7.92% during the last 3-month period.
“We delivered a strong quarter across each of our businesses”, said Morgan Stanley CEO James Gorman in a statement.
Pruzan, who replaced Ruth Porat in March after she left for a similar role at Google, also said the bank had received “positive feedback” from clients on a Moody’s upgrade of the bank’s credit ratings in May.
“They won the trading game this quarter”, said Jeff Harte, an analyst with Sandler O’Neill. (NYSE:CAF) traded 0.51 points or 1.66% higher at $31.17.The total intraday money flow for the shares came in at a disappointing $(-1.54) million. The growth was largely driven by higher FICC income, and equity sales and trading net revenues; while advisory revenues and underwriting revenues remained stable.
Profit jumped at Morgan Stanley’s institutional securities division, which includes its investment bank, and its stock, bond and commodities trading desks.
Revenue from equities trading accounted for about 24 percent of total adjusted revenue, while bond trading accounted for about 13 percent.
Shares of Morgan Stanley rose 4 percent in pre-market trading.
Secondly, the bank did well in trading even though it has been shifting under Gorman to steadier businesses like wealth and asset management and away from the volatility of markets trading.
Equities is comparatively low margin, so when rivals like Goldman Sachs posted a massive 63% year on year increase in Q2, this is was deemed less impressive than sustaining the “engine room” of profits in fixed income.
Net revenues at Morgan Stanley’s global wealth management segment rose 5 percent from the year-ago quarter to $3.88 billion, and investment management revenues grew 12 percent to $751 million from last year.
The results showed that Morgan… Excluding an accounting gain, profit was 79 cents a share, topping the 74-cent average estimate of 23 analysts surveyed by Bloomberg. Morgan Stanley executives have pledged to lift return on equity above 10 per cent. For the full year, the consensus calls for EPS of $2.99 on revenues of $36.76 billion.
Morgan Stanley ranked second globally after Goldman Sachs in advising on deals in the first half of 2015, according to Thomson Reuters data.
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Net revenue in Morgan Stanley’s fixed income and commodities unit was $1.3 billion in the second quarter, the New York bank reported Monday.
