Morgan Stanley posts record quarterly profit, Bank of America earnings more than halve in Q2

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NEW YORK: Morgan Stanley posted a record quarterly profit that blew past analysts' expectations as another of Wall Street's big investment banks gaine...

ATMs at a Bank of America branch in Washington, DC. – AFPPIXMorgan Stanley posted a record quarterly profit that blew past analysts' expectations as another of Wall Street's big investment banks gained from huge swings in financial markets due to the coronavirus crisis.

A hallmark of Gorman's tenure as CEO has been the bank's decade-long expansion into wealth and asset management, businesses that diversified the bank's revenue streams and provide balance against the unpredictability of its trading business. Investment banking was another bright spot, with revenue jumping 39% as companies looked to shore up their financial position to ride out the effects of Covid-19 pandemic.

The bank's earnings attributable to common shareholders rose 45% to US$3.2 billion, or US$1.96 per share. Analysts on average had expected a profit of US$1.12 per share, according to IBES data from Refinitiv. "Strong capital markets results provided an important counterbalance to the Covid-19-related impacts on our Consumer business," chief executive officer Brian Moynihan said.

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