Morgan Stanley reported Tuesday (July 16) that it performed better than expected across the board in the second quarter of 2024 when it comes to profits.

The company said that its profit surged by 41% from the same period last year to $3.08 billion, or $1.82 per share, while its revenue rose 12% to $15.02 billion. 

It also exceeded Zacks' consensus estimate of $1.65 per share.

It is understood that the company's equity trading made an 18% revenue rise to $3.02 billion, more than enough to exceed the StreetAccount estimate by about $330 million, while its fixed income trading revenue also increased by 16% to $1.99 billion.

CNBC reported that the reason for the firm's situation is due to its wealthier clients continuing to shift cash into higher-yielding assets because of the rate environment. 

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Morgan Stanley Performs Well Amid Investors' Doubts

It is understood that Morgan Stanley investors valued the more steady nature of the wealth management business compared to the less predictable nature of investment banking and trading. 

Yet the bank benefited from its Wall Street-centric business model during the quarter, with a rebound in trade and investment banking helped the bank's institutional securities division earn more revenue than its wealth management business.

Morgan Stanley CEO Ted Pick said that the firm would "continue to execute" on its strategy and remain to keep its position to deliver growth and long-term value for its shareholders. 

Aside from Morgan Stanley, JPMorgan Chase, Wells Fargo, and Citigroup exceeded expectations for revenue and profit. 

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