Morgan Stanley Reports Higher Profits, Revenue
By Liz Hoffman
Morgan Stanley said its second-quarter earnings rose about 39% from a year ago, concluding a big-bank earnings season that showed continued strength in the economy.
The smallest of the big six U.S. banks by assets reported $2.4 billion in profits on $10.6 billion revenue. On a per-share basis, Morgan Stanley's earnings were $1.30. Analysts polled by Thomson Reuters had expected $1.11 a share, on $10.1 billion in revenue.
The firm, run by Chief Executive James Gorman, is in the late innings of a multiyear turnaround effort. Mr. Gorman's push into wealth management -- Morgan Stanley manages $2.4 trillion on behalf of 3.5 million U.S. households -- has steadied its earnings and reassured investors, who had stayed away after repeated burns.
Among firms with big trading and investment-banking businesses, only JPMorgan Chase & Co. shares are more expensive, relative to book value, according to data from FactSet.
Steady economic growth, lower taxes and some renewed volatility in asset prices have all helped big banks this year. Goldman Sachs Group Inc., Morgan Stanley's closest peer, on Tuesday reported its best first half in nine years. Both firms have big businesses brokering corporate mergers, underwriting securities, and trading on behalf of hedge funds and other investors.
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(END) Dow Jones Newswires
July 18, 2018 07:15 ET (11:15 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.