FX.co ★ Morgan Stanley reports mixed Q2 results

Pacesetter in the brokerage industry Morgan Stanley reported quarterly financial results July 20. Its profits fell 8.5% from April to June 2015. The statement reads its net income dropped to $1.81 billion or 85 cents a share in Q2 compared with $1.89 billion or 92 cents a share in the year-earlier period.
Excluding a debt valuation adjustment, per-share earnings came to 79 cents beating the consensus. The median forecast of Bloomberg poll predicted a profit of 74 cents a share. Revenues in Q2 rose to $9.7 billion, compared with $8.6 billion a year ago.
Revenues of the securities division climbed to $2.3 billion in Q2 which is $0.92 billion up from Q2 in 2014 as client activity rose. Its wealth management unit reported net revenue of $3.99 billion versus $3.7 billion a year earlier amid higher asset management fees. Fixed income and commodities trading net revenues climbed to $1.3 billion from $1 billion. As of June 30, the bank’s asset value expanded to $403 billion in Q2 by $4 billion from Q2 a year ago.
According to capital standards of the Basel Committee on Banking Supervision (Basel III), liquidity coverage ratio of Morgan Stanley equals 14%, its minimum risk-based capital ratio is 15.7%. On July 20, the bank’s shares rose 1.9%. Since early 2015, shares have grown 3.6% in value.
Morgan Stanley has been acknowledged a flagship among other US investment banks in terms of a capitalization growth rate in 2013 and 2014. The bank’s market value doubled twice in this period.