Morgan Stanley shares rise after strong Q2 results
Wall Street banking giant Morgan Stanley has today reported a rise in quarter two revenues – beating forecasts.
The US bank reported a 17% rise in revenues for the three months to the end of June totalling $9.3 billion (£5.7 billion) – up from $8 billion in the same period a year ago.
However, the bank made a net loss of $558 million, or 38 cents per share, during the three-month period but this was much less than expected by analysts.
The loss was due to a one-off charge of $1.7 billion tied to the conversion of Mitsubishi UFJ Financial Group Inc.’s preferred stake, otherwise the bank would have made a profit of 64 cents.
In the last week or so, other US banking giants have reported their second quarter results but Morgan Stanley has been the most impressive so far, according to analysts.
Shares in the bank gained 9.1% as the results were announced – the biggest rise in more than two years.
In related news, Citigroup recently reported a 24% rise in second quarter profits as losses were reduced from bad loans.
The bank, which is in the third largest in the US, reported net income of $3.34 billion (£2.07 billion) in the three month period to the end of June.
Meanwhile, JP Morgan last week kicked off the banking reporting season with a 13% increase in profits – also better than forecasts.