Morgan Stanley (NYSE:MS) released its second quarter earnings report before opening bell this morning, posting earnings of 75 cents per share on $8.9 billion. Analysts were expecting earnings of 59 cents per share on $8.3 billion in revenue. In last year’s second quarter, the firm posted earnings of 85 cents per share on $9.7 billion in revenue.
Morgan Stanley sees strength in Equities
Morgan Stanley (NYSE:MS)’s Institutional Securities net revenues amounted to $4.6 billion on the back of strength in Equity trading and sales and solid performance in trading and sales for Fixed Income. The firm recorded $3.8 billion in net revenues for its Wealth Management segment, which had a pre-tax margin of 22.5%. Fee-based asset flows amounted to $12 billion. The Investment Management division brought in $583 million in net revenues. Assets under management or supervision were $406 billion at the end of the quarter.
“Our results this quarter reflect solid performance in an improved but still fragile environment,” said Morgan Stanley Chairman and CEO James Gorman in a statement. “In the midst of market uncertainty, we maintained our leadership positions across our core franchises and continued our focus on prudent risk management and judicious expense control. We remain committed to executing for our clients and delivering on our strategic priorities for our shareholders.”
Morgan Stanley updates capital positions
The firm had a Common Equity Tier 1 under the Basel III Advanced Approach transitional approach of about 16.9% at the end of the quarter. Its Tier 1 risk-based capital ratio was about 18.8% at the end of the quarter. Morgan Stanley’s pro forma fully phased-in Common Equity Tier 1 risk-based capital ratio under the Advanced approach was about 15.8%, while its pro forma fully phased-in Supplementary Leverage Ratio was about 6.1%.
The firm’s book value per share was $36.29 at the end of the quarter, while its tangible book value per share was $31.39.
Shares of Morgan Stanley (NYSE:MS) rose in premarket trading following this morning’s print, rising by as much as 2.87% to $29.