Morgan Stanley reports solid Q2 results despite declines in equities and fixed income investment banking activity

The bank reported net revenues of $13.5 billion for the second quarter off the back of a boost in its investment and wealth management businesses.

Morgan Stanley has reported an increase in net revenues for the second quarter despite ongoing muted activity in investment banking and a decline in equities and fixed income.

The bank reported net revenues of $13.5 billion for the second quarter, up from $13.1 billion in the same period last year.

The increase came off the back of strong activity in the bank’s investment and wealth management divisions.

Assets under management in Morgan Stanley’s investment management division rose to $1.4 billion, up from $1.35 alongside positive net flows. Wealth management also reported record net revenues of $6.7 billion.

The growth supported the bank through another flat investment banking quarter seen across the street. Morgan Stanley reported revenues in institutional securities of $5.6 billion in the second quarter down from $6.1 billion from the same period last year.

Investment banking revenues remained similar to last year. The bank reported equities revenues of $2.5 billion, down from just under $3 billion in Q2 2022. While fixed income revenues were $1.7 billion in the second quarter of this year in comparison with $2.5 billion last year.

“The firm delivered solid results in a challenging market environment. 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 – wealth and investment management added $100 billion in net new assets, bringing in over $200 billion year-to-date,” said James P. Gorman, chairman and chief executive officer.

“Our institutional businesses navigated the markets well through macro uncertainties. We finished the quarter in a strong capital position and raised our quarterly common dividend by 7.5 cents for the second year in a row. We remain confident in our ability to grow in various market environments while maintaining a strong capital position.”