Morgan Stanley released its second quarter earnings report before opening bell this morning, posting earnings of 79 cents per share, excluding DVA, on $9.6 billion in revenue. Net earnings were 85 cents per share. In last year’s second quarter, net earnings were 92 cents per share and net revenue was $8.6 billion excluding DVA. Analysts were expecting earnings of 73 cents per share and $9.1 billion in revenue.

Morgan Stanley (MS) Tops Estimates For Q2
Source: Pixabay

Key metrics from Morgan Stanley’s earnings report

Excluding DVA, Morgan Stanley’s earnings were 95 cents per share, while its revenue was $9.7 billion. In last year’s second quarter, net earnings were 92 cent per share and net revenue was $8.6 billion excluding DVA.

Net revenues from the Institutional Securities segment were $5 billion excluding DVA. Morgan Stanley reported solid performance in Equity sales and trading, Fixed Income, Commodities sales and trading, and Investment Banking. Revenues from Wealth Management were $751 million. Assets under management or supervision were $403 billion.

Morgan Stanley’s earnings by segment

Morgan Stanley reported income of $1.6 billion in its Institutional Securities business, compared to $960 million last year. Revenues from the Advisory business were flat at $423 million, while Equity sales and trading revenues rose from $1.8 billion to $2.3 billion. Fixed Income and Commodities posted revenues of $1.3 billion, an increase from last year’s $1 billion.

Wealth Management revenues income increased to $885 million. Within the segment, revenues from asset management fees increased slightly to $2.2 billion. Transactional revenues declined to $872 million. Total client assets under management were $2 trillion.

The Investment Management business recorded income of $220 million during the second quarter. Net revenues were $751 million, an increase of $705 million, in the firm’s Merchant Banking and Real Estate Investment business. Morgan Stanley had $403 billion in assets under management in the segment as of the end of the quarter, compared to last year’s $399 billion.

Morgan Stanley updates capital ratios

As of the end of June, Morgan Stanley had a Common Equity Tier 1 Basel III Advanced ratio of 14% and a Tier 1 risked=based capital ratio of 15.7%. The firm’s pro forma fully phased-in Common Equity Tier 1 ratio was 12.5%, while its Supplementary Leverage ratio was about 5.3%. Morgan Stanley’s book value per share was $34.52, while its tangible book value per share was $29.54.

As of this writing, shares of Morgan Stanley were up 2.9% at $41.40 per share in premarket trading.