James Gorman, President and CEO of Morgan Stanley, appears on CNBC’s Squawk Box at the 2020 World Economic Forum in Davos, Switzerland, on January 22, 2020.
Adam Galici | fake pictures
Morgan Stanley released second-quarter results on Thursday that beat analyst estimates of stronger business revenue than expected.
The bank generated earnings of $ 3.2 billion, or $ 1.96 per share, exceeding the estimate of $ 1.12 per share by analysts surveyed by Refinitiv. Revenue rose approximately 30% to a record $ 13.4 billion, a surprising increase that exceeded expectations by a total of $ 3 billion.
Morgan Stanley, which is essentially a global investment bank alongside a large wealth management business, benefited from one of Wall Street’s best trading quarters in years. The New York-based bank manages the largest stock trading business on Wall Street, as well as a bond trading division that exceeds its weight.
Under CEO James Gorman, Morgan Stanley has emphasized its wealth management division. It doubled with the acquisition of E-Trade, an agreement that will close in the fourth quarter.
Morgan Stanley is the last of the six largest banks in the United States to report second quarter earnings. JPMorgan Chase, Goldman Sachs and Citigroup beat analysts’ expectations for good results from operations and investment banking, while Wells Fargo recorded its first loss since the financial crisis in loan loss reserves.
This is what Wall Street expected:
Earnings: $ 1.12 per share, 9.2% less than the previous year, according to Refinitiv.
Revenue: $ 10.3 billion, almost unchanged from the previous year.
Wealth management: $ 4.12 billion, according to FactSet.
Trade: $ 2.35 billion shares; Fixed income $ 1.81 billion.
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