As you were

20 July 2015 By Antony Currie Follow @AntonyMCurrie

The bank led by James Gorman raked in decent revenue yet fell just shy of its 10 pct return on equity target. Trimming expenses would get it there, and could even catch Goldman at 11.7 pct. Although the two have trod different paths down Wall Street, the rivalry may never die.

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Morgan Stanley on July 20 reported second-quarter net income applicable to shareholders of $1.66 billion, or 85 cents a share. After excluding accounting gains on the value of its own liabilities, earnings per share was 79 cents, beating the consensus estimate of analysts of 74 cents, according to Thomson Reuters I/B/E/S. Adjusted annualized return on equity for the three months to June was 9.1 percent.

Adjusted net revenue was $9.56 billion, an increase of 12.2 percent from the same period last year. Morgan Stanley’s fixed income, currency and commodities traders generated $1.3 billion of revenue, after adjusting for accounting gains, a 25 percent increase from a year ago but a 32 percent decline from the three months to March.

Adjusted equities trading revenue of $2.27 billion was 27 percent higher than the same period last year.

Morgan Stanley’s equity and debt underwriting revenue were both flat from a year ago, but up 59 percent and 34 percent since March. The percentage increases bested all rivals that have reported so far except for the 47 percent increase in debt underwriting since the first quarter reported by Goldman Sachs.

Advisory revenue of $423 million was just 1 percent higher from a year ago, the lowest among peers. The sum represented a 10 percent fall from the first quarter.

Wealth management revenue increased 4.7 percent to $3.88 billion and the unit’s pre-tax margin was 23 percent.

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Adjusted equities trading revenue of $2.27 billion was 27 percent higher than the same period last year.

Advisory revenue of $423 million was just 1 percent higher from a year ago, the lowest among peers. The sum represented a 10 percent fall from the first quarter.

Wealth management revenue increased 4.7 percent to $3.88 billion and the unit’s pre-tax margin was 23 percent.

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