CEO of Morgan Stanley James Gorman speaks in New York, May 6, 2014.
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Morgan Stanley on Tuesday posted second-quarter earnings and revenue that topped analysts’ expectations, helped by record wealth management results.
Here’s what the company reported:
- Earnings: $1.24 a share, may not compare with $1.15 per share Refinitiv estimate
- Revenue: $13.46 billion vs. expected $13.08 billion
The bank said profit declined 13% to $2.18 billion, or $1.24 a share, on lower trading results from a year ago and a round of layoffs that triggered $308 million in severance costs. Revenue climbed 2% to $13.46 billion.
Under CEO James Gorman, Morgan Stanley’s reliance on wealth management has helped its steady earnings and boosted its valuation relative to peers. Gorman, who took over the firm in 2010, said in May he was preparing to step down within a year, setting off a succession race at the Wall Street powerhouse.
Despite lower market levels that caused some fees to dip from a year ago, second quarter wealth management revenue rose 16% to $6.66 billion on higher interest income, exceeding the $6.5 billion estimate of analysts surveyed by FactSet. The division took in $90 billion in net new client assets.
The company’s shares are up slightly this year, compared with the about 20% decline of the KBW Bank Index.
On Friday, JPMorgan Chase, Citigroup and Wells Fargo each posted earnings that topped analysts’ expectations amid higher interest rates. Goldman Sachs wraps up big bank earnings Wednesday.
This story is developing. Please check back for updates.
