MORGAN Stanley posted a better-than-expected surge in quarterly profit on Thursday, driven by strong trading gains as the coronavirus pandemic drove record swings in global financial markets.
The bank’s trading unit recorded a 68% jump in revenue, led by a nearly 168% surge in bond trading. Equities trading revenue rose 23%.
The results mirrored those of rival Goldman Sachs Holdings Inc, which posted its best trading revenue in a decade.
Investment banking was another bright spot for Morgan Stanley, where revenue jumped 39% as businesses continued to access the market to benefit from the lower rate environment and to raise liquidity.
Morgan Stanley set aside US$239 mil (RM1.02 bil) as provisions for credit losses, down from US$407 mil in the previous quarter.
The bank’s earnings attributable to common shareholders rose to US$3.2 bil, or US$1.96 per share, in the second quarter ended June 30, from US$2.2 bil, or US$1.23 per share, a year ago.
Analysts on average had expected a profit of US$1.12 per share, according to IBES data from Refinitiv. – July 16, 2020, Reuters
