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Morgan Stanley’s second-quarter profits fall despite uptick at core businesses | |
(35 minutes later) | |
Morgan Stanley’s second-quarter profit fell 9% from a year earlier, the bank said Monday, despite better results at all three of its core businesses. | Morgan Stanley’s second-quarter profit fell 9% from a year earlier, the bank said Monday, despite better results at all three of its core businesses. |
The investment bank and asset management firm earned $1.67bn, down from $1.82bn. On a per-share basis, that amounted to 85 cents, compared with 92 cents in the same period last year, when a one-time tax benefit boosted results. | The investment bank and asset management firm earned $1.67bn, down from $1.82bn. On a per-share basis, that amounted to 85 cents, compared with 92 cents in the same period last year, when a one-time tax benefit boosted results. |
Total net revenue at the bank rose to $9.74bn from $8.61 bn. | Total net revenue at the bank rose to $9.74bn from $8.61 bn. |
Profit jumped at Morgan Stanley’s institutional securities division, which includes its investment bank, and its stock, bond and commodities trading desks. Equity sales and trading revenues totaled $2.3bn in the quarter, compared with $1.8bn a year ago, as client activity rose. Fixed income and commodities trading also did well as net revenues climbed to $1.3bn from $1bn. Morgan Stanley was the only big bank to report a jump in trading revenue. | Profit jumped at Morgan Stanley’s institutional securities division, which includes its investment bank, and its stock, bond and commodities trading desks. Equity sales and trading revenues totaled $2.3bn in the quarter, compared with $1.8bn a year ago, as client activity rose. Fixed income and commodities trading also did well as net revenues climbed to $1.3bn from $1bn. Morgan Stanley was the only big bank to report a jump in trading revenue. |
Its wealth management arm, which includes the old Smith Barney franchise, reported net revenues of $3.88bn versus $3.7bn a year earlier, helped by higher asset management fees. | Its wealth management arm, which includes the old Smith Barney franchise, reported net revenues of $3.88bn versus $3.7bn a year earlier, helped by higher asset management fees. |
Shares of Morgan Stanley rose four percent in pre-market trading. | Shares of Morgan Stanley rose four percent in pre-market trading. |
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