Morgan Stanley (MS)’s profit rose in the second quarter as investment banking activity rebounded.
Its net income rose to $3.1 billion, or $1.82 per share, in the three months ended June 30, the bank said on Tuesday. That compares with $2.2 billion, or $1.24 per share, a year earlier.
Morgan Stanley’s stock price fell 2% before the bell.
An improving economic outlook, expectations of US interest rate cuts and surging equity markets have spurred corporate executives to carry out buyouts, debt sales and stock offerings after a nearly two-year dry spell for Wall Street.
Global investment banking revenues surged 17% in the first half to $41.6 billion, according to data from Dealogic.
Morgan Stanley’s investment banking revenue surged 51% to $1.62 billion in the second quarter.
Rival Goldman Sachs on Monday reported a 17% increase in investment banking revenue. On Friday, JPMorgan Chase reported a 46% gain in investment banking revenue, while Citi’s fees from investment banking jumped 60%.
(Reporting by Manya Saini in Bengaluru; editing by Lananh Nguyen and Devika Syamnath)
