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Morgan Stanley is the last of the major American banks to release earnings this week.
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Morgan Stanley is a financial services firm based in
The bank’s recent acquisitions of Eaton Vance and E*Trade helped it post stronger second-quarter earnings than expected. From $14.8 billion in sales, the investment bank (ticker: MS) earned $3.5 billion, or $1.85 per share. FactSet polled analysts, who predicted the bank would earn $1.66 per share on revenue of $13.97 billion.
The bank made $3.2 billion in the previous quarter, or $1.96 per share, on $13.7 billion in sales. Morgan Stanley’s chief executive, James Gorman, said in a statement, “The Firm achieved another very successful quarter, with contributions from all of our businesses.” “Our worldwide franchise is in a great position to grow even more.” As a result of the recent acquisition of E*Trade, Morgan Stanley’s wealth management group saw a 30 percent increase in revenue. The investment management division had a 92 percent rise in revenue as a result of the Eaton Vance acquisition. The institutional securities division of Morgan Stanley was a mixed bag. With gains in completed mergers and acquisitions and equity underwriting, investment banking revenue increased by 16 percent. This is in contrast to last year, when the coronavirus epidemic temporarily halted capital market activity. Morgan Stanley, like the other banks that reported earlier this week, saw a significant reduction in trading revenue. Fixed-income trading revenue was down 45%, while equity trading revenue was down 8%. Morgan Stanley is the final big bank to release earnings this week. peer group members such as
The Goldman Sachs Group is a global investment bank.
(GS) as well as
JPMorgan Chase & Co., Inc.
(JPM) also outperformed expectations, but its shares fell as investors sought fresh avenues of growth in the face of dwindling trading activity.
Bank of America is a financial institution based in the United
(BAC),
Wells Fargo & Company
and (WFC)
Citigroup
This week, (C) also released their results. In premarket trade, Morgan Stanley shares were down 1.4 percent. Carleton English may be reached at carleton.english@dowjones.com./n
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