Morgan Stanley Earnings Top Estimates With Strong Revenue Gains

Morgan Stanley (MS) reported second quarter earnings on Monday that topped estimates, but were still lower than what the company earned in the same period last year. The investment bank earned record profits in its wealth management unit and also saw the biggest increase in revenue among the major U.S banks, thanks to increased trading and brokerage fees. Morgan Stanley posted profits of $0.79 per share, down from last year's $0.92 per share, which got a one off boost from a $609 million tax benefit. Revenue came in at $9.6 billion, beating Wall street estimates of $9.1 billion. Shares were up on the earnings news. Traders across the banking industry have struggled to make any big gains in fixed income trading, weighed down by uncertainty in Greece and low interest rates. Morgan Stanley, however, saw their trading revenue up 32 percent from last year, despite shifting their focus away from the more volatile sector. The bank was the only one of the major U.S. banks to receive a two level rating boost from Moody's back in May.