Morgan Stanley gets boost from earnings
MORGAN Stanley shares soared in New York after earnings beat analysts' estimates and revenue from trading stocks surpassed all five of the company's bigger competitors.
Analysts said yesterday's strong earnings could be a turning point for Morgan Stanley, which was late to join rivals in the recovery from the financial crisis but now is winning key client mandates. The shares surged 10pc on Wall Street, the biggest gain since April 2009, after the New York-based company posted second-quarter net income of $1.96bn (€1.53bn).
The bank delivered its robust results a day after chief rival Goldman Sachs reported an unusually narrow profit amid weakness in trading and investment banking. In 2009, Goldman boasted a record annual profit while Morgan Stanley reported a loss.
Morgan Stanley chief executive James Gorman has added employees to Morgan Stanley's sales and trading unit to close a gap with larger competitors including Goldman. Stock-trading revenue rose 82pc from a year earlier. The 12pc decline in overall trading revenue from the first quarter was smaller than the drop at bigger banks.