Morgan Stanley 2Q profit falls, still tops expectations

By FinancialsFOXBusiness

Dick Bove on bank earnings

Rafferty Capital Markets chief financial strategist Dick Bove discusses bank earnings.

Morgan Stanley reported 2Q profit and revenue that  was down from year ago figures, but still beat Wall Street estimates.

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Net income of $2.2 billion or $1.23 per share, topped the estimate for $1.14.

Revenue of $10.2 billion also topped the estimate for $9.99 billion.

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“We reported solid quarterly results across all our businesses.  Firmwide revenues were over $10 billion and we produced an ROE within our target range, demonstrating the stability of our franchise,' said James P. Gorman, Chairman and Chief Executive Officer.  "We remain focused on serving our clients and pursuing growth opportunities while diligently managing expenses.”    Investment bank revenue was down 13 percent from a year ago.  Sales and trading net revenues fell 12 percent from a year ago.

Wealth management revenues increased by 2 percent.

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The bank earned a profit of  $1.25 per share during the same period a year ago on revenue of  $10.61 billion.

In this year’s first-quarter, earnings per share came in at $1.39 on revenue of $10.3 billion.