Morgan Stanley exceeds expectations in the second quarter
$MS (+0,06%) reported earnings per share (EPS) of 2.13 US dollars, beating the consensus estimate of 1.98 US dollars. Turnover rose to USD 16.8 billion, exceeding the expected USD 16.01 billion.
The Institutional Securities achieved sales of USD 7.6 billion, driven by increased client activity and particularly strong results in equity trading.
Wealth Management generated net sales of USD 7.8 billion with a pre-tax margin of 28.3%, supported by robust asset management revenues and increased client retention.
Investment Management generated net sales of USD 1.6 billion, mainly driven by management fees on higher average assets under management (AUM).
The division also recorded USD 11 billion in positive long-term net inflows.
In trading, turnover in the equities increased by 23 %, while the fixed income recorded an increase of 9 %.
The return on tangible equity (ROTCE) amounted to was 18.2 % in the quarter and 20.6 % in the first half of the year. The efficiency ratio of the company amounted to 70%, supported by economies of scale and disciplined cost control.
The company also announced an increase in the quarterly dividend to USD 1.00 per share.
