Morgan Stanley 2Q profit falls 9 percent

Staff Writer
Columbus CEO

NEW YORK (AP) — Morgan Stanley's second-quarter profit fell 9 percent from a year earlier, the bank said Monday, despite better results at all three of its core businesses.

The investment bank and asset management firm earned $1.67 billion, down from $1.82 billion. On a per-share basis, that amounted to 85 cents, compared with 92 cents in the same period last year, when a one-time tax benefit boosted results.

Total net revenue at the bank rose to $9.74 billion from $8.61 billion.

Profit jumped at Morgan Stanley's institutional securities division, which includes its investment bank, and its stock, bond and commodities trading desks. Equity sales and trading revenues totaled $2.3 billion in the quarter, compared with $1.8 billion a year ago, as client activity rose. Fixed income and commodities trading also did well as net revenues climbed to $1.3 billion from $1 billion. Morgan Stanley was the only big bank to report a jump in trading revenue.

Its wealth management arm, which includes the old Smith Barney franchise, reported net revenues of $3.88 billion versus $3.7 billion a year earlier, helped by higher asset management fees.

Shares of Morgan Stanley rose 4 percent in pre-market trading.