Also, CFO Paul C. Wirth sold 39,462 shares of Morgan Stanley stock in a transaction that occurred on Monday, May 11th.
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According to the statement, net income for Morgan Stanley was $1.8 billion dollars, or 85 cents per diluted share for the current quarter, compared with net income of $1.9 billion dollars, or 92 cents per diluted share for the same period a year ago. The big bank reported adjusted diluted earnings per share (EPS) of $0.79 on revenue of $9.6 billion.
Pruzan, who replaced Ruth Porat in March after she left for a similar role at Google Inc (GOOGL.O), also said the bank had received “positive feedback” from clients on a Moody’s upgrade of the bank’s credit ratings in May. Revenues from Wealth Management were $751 million.
While the retail-brokerage business is growing steadily, the fixed-income division is more of a wild card, since it could boost revenue further, depending on market conditions and continuing regulatory pressures. As per the information, the brokerage house raises the price target to $39 per share from a prior target of $37.
For the first half, Morgan Stanley’s ROE stood at 11.3% on an annualized basis, reflecting a steady climb since Mr. Gorman, a onetime McKinsey & Co. consultant and Merrill Lynch & Co. executive was promoted to become Morgan Stanley CEO in 2010.
Morgan Stanley’s institutional securities business – which includes both bond and equity trading – accounted for 52.2% of overall revenue in quarter, up from 49% a year earlier. Total revenue slumped 26.5% to $5.92bn, but beat analysts’ average estimate of $5.78bn. The other key upward pointing metrics which were discussed by the management team post the earnings release was the almost 9.1 percent jump in the “return on equity”. Mr Chubak estimated equities revenue of about $2.01bn and Mr Goldberg predicted $2.07bn.
JPMorgan, Wells Fargo, Bank of America, Goldman Sachs, and Citigroup reported second-quarter earnings last week.
Morgan Stanley “won the trading game this quarter”, said Jeff Harte, an analyst with Sandler O’Neill + Partners LP.
Morgan Stanley is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals.
It compares to profits of $1.8bn in the same period previous year. The firm meanwhile brought in just six teams with around $1.8 billion in assets, according to the database.
Compensation expense and benefits grew 5 percent to $4.41 billion, primarily driven by higher revenues.
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The wealth management segment accomplished a pretax margin of 23 percent, versus 22 percent in Q1, and 21 percent in the same quarter past year.
