Morgan Stanley (MS, Financial) has reported its best-ever second-quarter performance in stock trading, capitalizing on market fluctuations influenced by U.S. President Donald Trump's policies. The bank's stock trading revenue surged 23% year-over-year, reaching $3.72 billion, surpassing analyst expectations. Additionally, its wealth management division attracted $59.2 billion in net new assets, exceeding market forecasts.
On the same day, Bank of America and Goldman Sachs also released their earnings reports, with investors keen to understand the impact of Trump's tariffs, which have caused significant market volatility. This volatility contributed to Goldman Sachs achieving its best trading performance to date.
Morgan Stanley's investment banking fees fell by 5% to $1.54 billion, but the decline was less than analysts had predicted, thanks to a 42% increase in equity underwriting. However, advisory and bond underwriting revenues fell short of expectations.
As of Tuesday, Morgan Stanley's stock had risen 13% this year, although it saw a slight decline in pre-market trading in New York. The wealth management division reported net revenue of $7.76 billion, also beating analyst predictions. At the start of 2023, Morgan Stanley set a goal to add $1 trillion in net new assets approximately every three years.
