The Morgan Stanley Q2 2017 earnings report was released before opening bell this morning. The firm posted earnings of 87 cents per share on $9.5 billion in revenue, compared to the consensus estimates of 76 cents per share and $9.15 billion. In last year’s second quarter, the firm reported earnings of 75 cents per share on $8.9 billion in revenue.
Morgan Stanley Q2 2017 earnings
Institutional Securities net revenues rose to $4.8 billion from $4.6 billion last year. The first said strength in its equity sales and trading and merger and acquisition advisory segments drove the growth, as did the improved results in the underwriting business. Wealth Management net revenues rose to $4.15 billion from $3.81 billion a year ago. The segment’s fee-based asset flows amounted to $19.9 billion. Investment Management revenues rose to $665 million from $583 million in last year’s second quarter. Assets under management in the division amounted to $435 billion at the end of the quarter.
“Our second quarter results demonstrated the resilience of our franchise in a subdued trading environment. Our wealth management business produced a 25% margin and our strong investment banking results attest to the diversity of our global business,” Morgan Stanley Chairman and CEO James Gorman said in a statement. “We continue to deliver on our strategic goals and grow shareholder returns.”
Morgan Stanley raises its dividend
The firm’s net interest income rose to $1 billion from $829 million a year ago. Analysts had been looking for $919 million. Sales and trading revenue ticked lower to $3.2 billion from $3.3 billion last year. Wall Street had been expecting $3.04 billion. Fixed income sales and trading revenue fell to $1.2 billion from $1.3 billion in last year’s second quarter. Consensus had been expecting $1.3 billion. Equity underwriting revenue jumped to $405 million from $266 million last year.
Morgan Stanley (NYSE:MS) also boosted its quarterly dividend to 25 cents per share and announced a share buyback program of up to $5 billion to last through the second quarter of 2018.
Following the Morgan Stanley Q2 2017 earnings report, the firm’s stock rose by as much as 2.24% to $46.15 in premarket trading this morning.