Morgan Stanley (NYSE:MS) reported second quarter results that topped analyst estimates, driven by growth in trading revenue.
However, rising provisions for credit losses, which jumped to $196 million from $76 million in the year-ago quarter, saw Morgan Stanley’s shares move lower following the report.
Total revenue for Q2 was $16.79 billion, above the $16.07 billion expected, and up from $15 billion for the same period last year.
Institutional securities revenues grew to $7.64 billion from $6.98 billion in the year-ago quarter, attributed to an increase in equity and fixed income trading and increased client activity.
Wealth Management revenues rose to about $7.8 billion, fueled by asset management and higher client engagement.
Net income grew to $3.5 billion or $2.13 per share from $3.1 billion or $1.82 per share, ahead of the Wall Street consensus $1.96.
“Morgan Stanley delivered another strong quarter,” CEO Ted Pick said in a statement. “Six sequential quarters of consistent earnings...reflect higher levels of performance in different market environments.”
Shares of Morgan Stanley fell 3.2% to about $137 on Wednesday morning.