fb-pixel Skip to main content

NEW YORK — Morgan Stanley’s second-quarter earnings surged, driven by growth in its wealth management operations and strong performances in investment banking and equity sales.

Excluding certain charges relating to its debt and a big tax benefit, Morgan Stanley posted profit of $1.3 billion, or 60 cents a share, on $8.5 billion in revenue, up 46 percent from the second quarter of 2013.

Analysts had expected earnings of 55 cents a share on revenue of $8.1 billion, according to a survey by Thomson Reuters.

Including the charges and tax benefit, profit nearly doubled, to $1.9 billion.

Like the rest of Wall Street, Morgan Stanley has since the financial crisis wrestled with a sluggish trading business. As a result, the bank has expanded its wealth management unit.

Advertisement



“Our quarterly results demonstrated solid performance, despite a muted operating environment,” said chief executive James P. Gorman.

The company has also taken steps to exit some of its commodities businesses and plans to complete the sale of its oil unit this year.

Morgan Stanley’s return on equity also jumped ahead of its main rival, Goldman Sachs, to 11.5 percent. On Tuesday, Goldman reported a return on equity of 10.9 percent.

New York Times