Morgan Stanley's profit jumps as investment banking recovers

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Morgan Stanley's net income rose to $3.1 billion, or $1.82 per share, in the three months ended June 30. That compares with $2.2 billion, or $1.24 per share, a year earlier.

Morgan Stanley's profit rose in the second quarter as investment banking activity rebounded on strength in equity and debt underwriting. Shares of the bank still fell 2% in choppy premarket trading as wealth management revenue rose only marginally, after powering growth through most of 2022 and 2023. The segment's revenue increased to $6.8 billion in the quarter from $6.7 billion a year earlier, roughly in line with Wall Street expectations, according to LSEG data.

The bank's net income, however, rose to $3.1 billion, or $1.82 per share, in the three months ended June 30, it said on Tuesday. That compares with $2.2 billion, or $1.24 per share, a year earlier. "The firm delivered another strong quarter in an improving capital markets environment," said CEO Ted Pick in a statement. A rosier economic outlook, expectations of U.S.

Goldman Sachs, JPMorgan Chase and Citi had also reported robust investment banking revenue. Under former CEO James Gorman, Morgan Stanley had grown a wealth management powerhouse generating more stable revenue than more volatile businesses such as investment banking and trading. It aims to manage $10 trillion in client assets. GET FOX BUSINESS ON THE GO BY CLICKING HERE The bank's institutional securities unit reported revenues of $7 billion in the second quarter, up from $5.

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