Morgan Stanley posted stronger-than-expected second-quarter earnings Thursday as trading revenues surged and bad loan provisions fell from the first three months of the year.
Morgan Stanley said earnings for the three months ending in June were pegged at $1.96 per share, up 60% from the same period last year and firmly ahead of the Street consensus forecast of $1.12 per share . Group revenues, Morgan Stanley said, rose 31% to $13.41 billion, again topping analysts' estimates of a $10.31 billion tally.
Wealth management revenues, a significant portion of the group's overall business, rose 6% to $4.68 billion.
“Our decade long business transformation was intended to provide stability during times of serious stress. The second quarter tested the model and we performed exceedingly well, delivering record results," said CEO James Gorman.
"This builds on the momentum of a very strong first quarter, while more than 90% of our employees continue to work from home, demonstrating the ongoing operational resilience of our platform," he added. "We remain focused on supporting our employees, communities, and clients, while managing our risk and continuing to invest in our businesses.”
Jim Cramer said that he likes the Morgan Stanley story "very much" on Twitter.
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