On Tuesday, Morgan Stanley announced its second quarter financial results, showing slightly lower data from the previous quarter.
Its stock price went up by 6.45% to $91.94 per share on Wednesday. Likewise, it is expected to rise by 0.12% to $92.05 apiece in the upcoming session.
The company’s earnings per share declined to $1.24, still higher than the analysts’ $1.23 consensus. However, it is lower than the prior $1.70 reading.
Moreover, the revenue of Morgan Stanley went down to $13.50 billion, but better than the $13.03 billion forecast. Nevertheless, it is smaller than the previous $14.50 billion figures.
Topping experts’ estimates were led by growth in its wealth management business. It balanced its weaker trading profits in Q2 while executives stated their hopes for the economic environment.
CEO James Gorman said the quarter closed in a better state and tone despite uncertainties amid the banking crisis. He added that rate hikes would not stop for a while, but he thinks its end will come soon.
Its wealth management sector’s revenue rose by 16.00% to $6.70 billion for the current quarter. Additionally, it gained $90.00 billion in new assets.
On the other hand, the fixed income revenue of Morgan Stanley dropped by 31.00% while equities had a 14.00% decrease. Also, its earnings crumbled due to the $300.00 million severance costs after laying off thousands of employees.
Technologists of Morgan Stanley Left China
On July 18, journalists reported 200 technology developers from Morgan Stanley moved out of China. The Asian nation became more uptight with access to a cache of data stored.
As stated in the report, most of the staff will move to Hong Kong and Singapore. Also, it said that the US-based bank is working on a standalone system in China to match their local regulations.
Moreover, the US sees the new counterintelligence law as threatening US firms. In addition, Morgan Stanley did not respond immediately to journalists’ requests.
Furthermore, the new infrastructure, which is worth hundreds of millions of dollars is incompatible with the firm’s legacy global platforms.
