Morgan Stanley Inc., the nation’s second largest securities firm, reported Wednesday that its second-quarter profit more than doubled from a year earlier on record revenue driven by stronger underwriting, merger and acquisition, and trading results.
Net income rose to $1.96 billion, or $1.86 per share, from $928 million, or 86 cents per share, a year earlier.
Revenue after interest expense and provision for consumer loan losses increased 48 percent to $8.94 billion from $6.03 billion.
The results easily beat the earnings of $1.45 per share on $7.87 billion of revenue expected by analysts surveyed by Thomson Financial.
“I could not be more pleased with the outstanding results the employees of Morgan Stanley delivered in the second quarter,” said Chief Executive John Mack in a statement. “There is still a great deal of work to be done, but we are moving aggressively on many fronts and we see significant opportunities to create shareholder value.”
The New York-based firm follows three of its rivals — Goldman Sachs Group Inc., Lehman Brothers Holdings Inc., and Bear Stearns Cos. — in posting sharply higher results. All companies came off record first-quarter results, driven by a run in stock market trading and a resurgence of M&A.