Financial services firm Morgan Stanley reported Tuesday weak profit in its second quarter, despite increased revenues in a challenging market environment. Earnings per share and topline, however, beat market estimates.<\/p>\n
James Gorman, Chairman and Chief Executive Officer, said, “The quarter started with macroeconomic uncertainties and subdued client activity, but ended with a more constructive tone. Consistent with our strategy, we continued to attract client assets …. Our Institutional businesses navigated the markets<\/span> well through macro uncertainties. .. We remain confident in our ability to grow in various market environments while maintaining a strong capital position.”<\/p>\n Further, the Board of Directors declared a $0.85 quarterly dividend per share, representing an increase of 7.5 cents per share, payable on August 15 to common shareholders of record on July 31.<\/p>\n In the quarter, Institutional Securities net revenues declined, reflecting continued muted activity in Investment Banking and declines in Equity and Fixed Income. This was driven by lower client activity in a less favorable market environment compared to a year ago.<\/p>\n Wealth Management net revenues increased 16 percent from a year ago. Asset management revenues decreased 2 percent reflecting lower asset levels primarily due to declines in the markets. Investment Management net revenues also were down 9 percent.<\/p>\n For the second quarter, the company’s net income applicable to the shareholders totaled $2.05 billion or $1.24 per share, down 14 percent from $2.39 billion or $1.39 per share a year ago.<\/p>\n The latest second quarter was impacted by severance costs of $308 million associated with an employee action.<\/p>\n Analysts on average had expected the company to earn $1.15 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.<\/p>\n The company’s net revenue for the quarter rose 2.5 percent to $13.46 billion from $13.13 billion last year. The Street was looking for revenues of $13.08 billion for the quarter.<\/p>\n Total non-interest revenues grew 6 percent year-over-year to $11.45 billion.<\/p>\n Interest income surged to $12.05 billion from last year’s $3.61 billion, while net interest dropped 12 percent from the prior year to $2.01 billion.<\/p>\n Provision for credit losses grew 59 percent to $161 million.<\/p>\n In pre-market activity on the NYSE, Morgan Stanley shares were losing around 0.2 percent to trade at $86.20.<\/p>\n For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com. <\/p>\n