Morgan Stanley profit beats estimates as traders shine

Morgan Stanley's (MS.N), opens new tab profit beat Wall Street estimates in the second quarter as its traders cashed in on volatile markets, mirroring results among its Wall Street rivals. Equities trading revenue surged 23%, while it jumped 9% in fixed income, as the turbulence also spilled into bond markets. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Equity markets swung sharply during the quarter after U.S. President Donald Trump announced sweeping tariffs against major economies. This spurred trading as investors repositioned their portfolios and hedged risks. Advertisement · Scroll to continue Institutional Securities, which houses Morgan Stanley's Wall Street operations, posted revenue of $7.6 billion, compared with $7 billion, a year ago. "Institutional Securities saw strength and balance across businesses and geographies. Wealth continues to deliver," CEO Ted Pick said in a statement. Goldman Sachs (GS.N), opens new tab, Citigroup (C.N), opens new tab and JPMorgan Chase (JPM.N), opens new tab all reported trading windfall in the second quarter. Morgan Stanley posted net income of $3.5 billion, or $2.13 per share, for the three months ended June 30. That compares with $3.1 billion, or $1.82 per share, a year earlier. Analysts on average had expected $1.96 per share, according to estimates compiled by LSEG. Advertisement · Scroll to continue Morgan Stanley's revenue reached $16.8 billion in the second quarter, topping estimates of $16.1 billion. Shares of the bank were last flat following the results. DEALMAKING LAGS Morgan Stanley's investment banking revenue fell 5% in the quarter, lagging rivals including Goldman and JPMorgan Chase. Advisory revenue slid to $508 million, compared with $592 million, a year ago, due to lower completed M&A transactions. CEO Pick has maintained a positive view for the year, telling investors in June that deal discussions were persistent and ramping up. In line with his view, dealmaking rebounded at the end of the quarter as some companies looked past tariff uncertainty and gained confidence to carry out IPOs, mergers and acquisitions. Industry executives also held up that optimism this week, anticipating that deals and stock market listings will pick up in the second half of the year.