The five big Wall Street banks – excluding Wells Fargo Corp (WFC.N), which does not have a large investment banking business – reported total net earnings of $24.1 billion in the quarter, up $6.7 billion from the same quarter previous year.
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The bank’s profit in the year-earlier quarter was boosted by a one-time tax benefit of Dollars 609 million.
Total net revenue at the bank rose to $9.74 billion from $8.61 billion.
Overall, Morgan Stanley Wealth Management’s assets under management stood at $2.03 trillion, up 2% from $2.002 billion a year ago.
Shares of Morgan Stanley have dropped 0.5% to $40.00 at 3:44 p.m. today, while Goldman Sachs has dipped 0.1% to $212.28.
Profit in Morgan Stanley’s wealth-management arm was $561 million compared with $471 million previous year.
Shares of Morgan Stanley rose four percent in pre-market trading.
“We delivered a strong quarter across each of our businesses, through client-focused execution, expense discipline and prudent risk management”. The growth was largely driven by higher FICC income, and equity sales and trading net revenues; while advisory revenues and underwriting revenues remained stable.
“We’re very comfortable with the business we have and the size of the business”, Mr. Gorman said on the call.
Morgan Stanley net declined 5% but revenues jumped 13%. This quarter’s earnings are the first since former Morgan Stanley Chief Financial Officer Ruth Porat left to take the same position at Google Inc.
Lennox worldwide Inc (LII) soared 9.4% or $10.10 to $117.69 after the climate control solutions provider stated revenues in the second-quarter ending in June increased 3% to $992.5 million from a year ago period.
On an adjusted basis, the bank earned 79 cents per share – beating the average analyst estimate by 5 cents, according to Thomson Reuters I/B/E/S. During second-quarter 2015, the company announced the sale of its Global Oil Merchanting Unit to Stamford, CT-based Castleton Commodities worldwide LLC (a commodity-trading firm), in an all-cash transaction. A provision of the Dodd-Frank reform law passed after the financial crisis, the rule places strict limits on banks’ trading on their own accounts.
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For the future, Pruzan said, the bank is working on digital cash management innovations to attract more customers to add to its $140bn cache of deposits. The division’s profit margin before taxes was 23 per cent, within the 22-25 per cent range executives are targeting for the year. The bank’s tangible book value per common share at the end of the quarter was $29.54, based on approximately 2 billion shares outstanding.
