NEW YORK, July 16 — Morgan Stanley posted a better-than-expected surge in quarterly profit today, driven by strong trading gains as the coronavirus pandemic drove record swings in global financial markets.
The bank’s trading unit recorded a 68 per cent jump in revenue, led by a nearly 168 per cent surge in bond trading. Equities trading revenue rose 23 per cent. The results mirrored those of rival Goldman Sachs Holdings Inc, which posted its best trading revenue in a decade.
Investment banking was another bright spot for Morgan Stanley, where revenue jumped 39 per cent as businesses continued to access the market to benefit from the lower rate environment and to raise liquidity.
Morgan Stanley set aside US$239 million (RM1.02 billion) as provisions for credit losses, down from US$407 million in the previous quarter.
The bank’s earnings attributable to common shareholders rose to US$3.2 billion, or US$1.96 per share, in the second quarter ended June 30, from US$2.2 billion, or US$1.23 per share, a year ago.
Analysts on average had expected a profit of US$1.12 per share, according to IBES data from Refinitiv. — Reuters
