Morgan Stanley announced on Tuesday that it had posted better-than-expected earnings for the second quarter, boosted in particular by renewed activity on the mergers & acquisitions (M&A) and initial public offerings (IPOs) fronts.

This morning, the US investment bank reported a 44% increase in net income, group share, to $2.9 billion, or $1.82 per share, compared with $2 billion ($1.24 per share) a year earlier.

By way of comparison, analysts were expecting EPS of $1.65.

Net banking income rose by 12% to over $15 billion, boosted mainly by a 51% jump in income from its investment banking division.

The New York-based firm, which says it benefited from an "improved capital markets environment", says it participated in more M&A transactions, private placements, IPOs and convertible bond offerings.

Income from equity trading was up 18% year-on-year, driven mainly by activity in Asia, while income from fixed-income assets (fixed-income and foreign exchange) was up 16% due to buoyant currency markets.

The Group also announced plans to raise its quarterly dividend by 7.5 cents to $0.925.

Copyright (c) 2024 CercleFinance.com. All rights reserved.