Morgan Stanley, reported higher than expected earnings

One of the largest US banks - Morgan Stanley, reported higher than expected earnings for the second quarter of the year. The improved results come from business trading of bonds and shares, where the bank has performed much better than its main competitors on Wall Street, reported Reuters.
Morgan Stanley was the last major financial institution in the US, which published its results for the quarter. While better than expected net profit fell to 1.67 billion. Dollars, or 85 cents per share, compared to 1.82 billion., Or 92 cents, in the same period last year. The end result significantly exceeded average forecasts of analysts.
Income from trading
Adjusted net income for the quarter increased by 12.2% to 9.56 billion. Dollars. Revenues from management of the bank capital increased by 4.7% to 3.88 billion., While the operating profit of this business has risen to 885 million. Sporyamo USD 763 mln. For the same quarter last year.
Revenues from trading in securities, currencies and commodities jumped 25 percent to 1.27 billion. Dollars. This business was one of the weakest points in the reports of other major US banks for the period. The reasons for the deteriorating performance of this business shows reduced activity of traders due to factors such as uncertainty surrounding the Greek crisis, the collapse of the Chinese capital markets and especially the expectation the Fed to initiate a change of interest rate policy.
Morgan Stanley's results are particularly impressive for a bank, which generally focus on strong sectors such as management of capital in and out of more volatile markets such as those of bonds to meet the new more stringent regulatory requirements. However, the bank's revenue from trading shares rose 27 percent in the quarter to 2.27 billion. Dollar against 2 billion. Betting trade competitors like Goldman Sachs Group. Morgan Stanley's revenue from all kinds of trade increased by 32% yoy to 3.5 bln. Dollars, while Goldman Sachs declined by 6% to 3.6 billion. Dollars.
A pleasant surprise
"Morgan Stanley won the game in trade during the quarter. Markets are surprised by this," he told the Wall Street Journal Jeff Harte, an analyst at Sandler O'Neill. After the announcement of the results of the bank's shares rose 3.4%.
Morgan Stanley's revenue from investment banking, which includes consulting and brokerage transactions and the issuance of bonds and shares fell 1% to 1.61 billion. For the quarter. According to Thomson Reuters data for the first half of 2015 the bank was ranked second in the world in this sector after Goldman Sachs.