Morgan Stanley announced Wednesday that it posted a second quarter profit following a loss in the prior year quarter. The results were driven by a 53 percent jump in revenue.
The Wall Street bank and broker said second quarter earnings totaled $1.58 billion or $1.09 a share, compared to a loss of $1.26 billion or $1.10 a share in the same period a year earlier.
Revenue jumped in the quarter to $7.95 billion as trading revenues were strong. The firm’s securities unit generated revenue of $4.5 billion.
Results easily topped analyst estimates for earnings of 46 cents a share on revenue of $7.93 billion.
“While markets were challenging this quarter, Morgan Stanley benefited from a deliberate and disciplined focus on execution,” said President and CEO James P. Gorman.
“We still have a great deal of work to do across our global franchise and anticipate that the difficult market environment may continue in the months ahead. That said, we believe that regulatory reforms are a key step toward restoring trust in the industry and the markets,” added Gorman.
As for compensation, Morgan Stanley said it set aside $3.89 billion in the second quarter. Costs related to compensation totaled 49 percent of revenue, same as the first quarter.
