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Morgan Stanley Q2 revenue increases 12% to $10.6bn

BBR Staff Writer Published 19 July 2018

Morgan Stanley’s net revenues surged 12% to $10.6bn for the second quarter ended 30 June 2018, compared to the $9.5bn reported in the same period last year.

In the quarter that ended on 31 March, 2018, the US investment banking company reported net revenues of $11.07bn.

For Q2 2018, Morgan Stanley’s institutional securities business contributed the most with $5.71bn, an improvement by 20% to the $4.76bn earned in the same quarter last year.

The company said that the second quarter results for institutional securities reflected strong performance across its Sales and Trading franchise and Investment Banking.

However, in the previous quarter, the business had earned more at $6.1bn.

The trading unit of Morgan Stanley brought the company revenue of $3.29bn, which is a 12% increase from the $2.93bn earned in Q2 2017.

Investment banking chipped in with revenue of $1.79bn, reflecting an increase of 10% to the $1.53bn it made in the same period in 2017.

Morgan Stanley’s wealth management business contributed $4.32bn, an increase of 4% compared to $4.15bn reported during Q2 2017.

The company earned $3.18bn from its asset management division, sustaining the revenue made from it in the previous quarter while improving by 10% compared to the $2.9bn earned in Q2 2017.

It reported its total client assets to be $2.4tn and client assets in fee-based accounts at $1.1tn at the end of the second quarter.

Morgan Stanley’s investment management business revenue, on the other hand, rose 4% to $691m compared to $665m earned in the same period last year. Its intersegment eliminations business earned $120m in the latest reported quarter, compared to the $75m registered during Q2 2017.

Morgan Stanley chairman and CEO James Gorman said: “We reported robust revenue and earnings growth this quarter with strength across all businesses and geographies. The second quarter performance reflected active markets and healthy client engagement.

“Our strong global franchise positions us well to continue to grow organically across each of our businesses and to deliver operating leverage.”

Image: Morgan Stanley's headquarters in New York City, US. Photo: courtesy of Morgan Stanley.