By Tatiana Bautzer and Manya Saini
(Reuters) -Morgan Stanley’s second-quarter revenue beat expectations on Tuesday, driven by a rise in financialinvestment banking that was balancedout by soft development in wealth management.
Shares in the bank were last up 1.4% in earlymorning trading, reversing course from the premarket.
Revenue development in wealth management slowed to 2% in the 2nd quarter, compared with a 16% dive a year earlier. Net brand-new possessions came in at $36.4 billion, listedbelow last year’s $89.5 billion. The system’s profits of $6.79 billion was alittle shy of Wall Street expectations, according to LSEG information.
Institutional securities income grew 23% in the quarter to $7 billion as financialinvestment banking earnings skyrocketed 51%.
The investment-banking company is in the “early innings of healing,” with broad-based development throughout sectors and areas, Chief Financial Officer Sharon Yeshaya informed Reuters.
“Investment banking pipelines are healthy and varied, dialogs are active, and markets are open,” she lateron informed experts on a conference call.
In wealth, development in web brand-new properties can be unequal, Yeshaya included, and was impacted by greater customer tax payments. Still, yearly development stayed in the business’s anticipated variety of 5% to 7%.
The results showed an “overall strong quarter,” composed experts led by Keith Horowitz at Citigroup in a note to customers.
“The stock was priced with a fairly high bar heading into the print … we stay extremely positive in the wealth management story here,” he composed, keepinginmind that development in internet brand-new possessions can be irregular.
The bank’s wealth service grew under previous CEO James Gorman, getting more steady earnings than more unpredictable market-sensitive busines