Morgan Stanley (NYSE:MS) shares rebounded on Tuesday afternoon after the bank reported a rise in second-quarter profit driven by a rebound in investment banking activities, particularly in equity and debt underwriting.
Despite this, wealth management revenue saw only marginal growth, contrasting with stronger performance in previous years.
The bank's net income rose to $3.1 billion, or $1.82 per share, up from $2.2 billion, or $1.24 per share, a year earlier.
Investment banking revenues surged, with equity underwriting up 56% and fixed income underwriting up 71%.
Total revenue increased nearly 12% to approximately $15 billion, with institutional securities revenue reaching $7 billion.
“The firm delivered another strong quarter in an improving capital markets environment,” Ted Pick, CEO of Morgan Stanley (NYSE:MS) said in a statement.
“We announced an increase of our quarterly common stock dividend to $0.925 per share while maintaining robust capital levels with a CET1 ratio of 15.2%, reflecting the durability of our business model. We continue to execute on our strategy and remain well positioned to deliver growth and long-term value for our shareholders.”