Morgan Stanley earnings top estimates on increased trading revenue

Morgan Stanley on Wednesday reported second-quarter results that crushed Wall Street expectations on the back of higher trading revenues.

Here's what the bank reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share:$2.13 vs. $1.96 expected
• Revenue:$16.79 billion versus $16.07 billion expected

Net income rose 13% to $3.5 billion, or $2.13 per share, from $3.1 billion, or $1.82 per share, for the same period a year ago.

Institutional securities reported net revenues of $7.64 billion, compared to about $6.98 billion a year ago. The strong performance was propelled by higher client activity with notable strength in equity trading.

“Morgan Stanley delivered another strong quarter,” Ted Pick, CEO and chairman of the bank said in a statement. “Six sequential quarters of consistent earnings ... reflect higher levels of performance in different market environments.”

Wealth management was another strong segment for the bank, which delivered net revenues of $7.76 billion on higher asset management revenues. A year ago, the business saw revenues of $6.79 billion.

The bank stock has risen more than 12% this year, doubling the S&P 500's performance. Shares were around flat in premarket trading immediately following the results.