Morgan Stanley beats estimates on higher trading revenue

Send a link to a friend  Share

[July 18, 2018]  (Reuters) - Morgan Stanley reported a better-than-expected quarterly profit on Wednesday, driven by gains in its fixed income and equities trading businesses, sending its shares up 3.3 percent.


Net revenue from the bank's sales and trading business rose 18 percent to $3.76 billion, with fixed income and equity trading businesses recording gains of 12 percent and 15 percent.

In contrast, rival Goldman Sachs' trading revenue rose 17 percent, with bond trading showing a 45 percent jump and equity remaining flat in its second quarter.

Net income applicable to Morgan Stanley's shareholders rose 43 percent to $2.27 billion in the quarter ended June 30.

On an adjusted basis, the bank earned $1.25 per share, beating the average analyst estimate of $1.11 per share, according to Thomson Reuters I/B/E/S data.

Morgan Stanley's net revenue rose 11.6 percent to $10.61 billion, with institutional securities accounting for 53.8 percent of the gains. Institutional securities business comprises the bank's investment banking and trading units.

(Reporting By Aparajita Saxena in Bengaluru; Editing by Saumyadeb Chakrabarty)

[ 2018 Thomson Reuters. All rights reserved.]

Copyright 2018 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.


Back to top