Morgan Stanley profit rises 42%
NEW YORK -- Morgan Stanley’s profit jumped 42% in the second quarter, boosted by trading, wealth management and investment banking.
The major Wall Street bank reported $802 million, or 41 cents a share, in second-quarter net income, up from $564 million, or 29 cents, in the same period a year ago.
The results included a $152-million charge stemming from the bank’s acquisition of the remaining stake in the Morgan Stanley Smith Barney joint venture in June.
Analysts had estimated earnings of 43 cents a share, according to data compiled by Thomson Reuters.
Net revenue rose 22% to $8.5 billion.
Morgan Stanley has been undergoing a shift toward wealth management, a more stable source of income.
“This quarter, we saw significant year-over-year revenue growth in each of our five major business units and higher year-over-year profitability,” James Gorman, the bank’s chairman and chief executive, said in a statement. “We continue to work as one firm to realize the advantages specific to our business model.”
As it released earnings results Thursday, the bank said it would buy back $500 million in shares through March 2014.
In pre-market trading in New York, Morgan Stanley’s shares gained $1.46, or 5.5%, to $28.
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