Morgan Stanley beats estimates on higher trading revenue

[July 18, 2018]  (Reuters) - Morgan Stanley reported a better-than-expected quarterly profit on Wednesday, driven by gains in its fixed income and equities trading businesses, sending its shares up 3.3 percent.

Net revenue from the bank's sales and trading business rose 18 percent to $3.76 billion, with fixed income and equity trading businesses recording gains of 12 percent and 15 percent.

In contrast, rival Goldman Sachs' trading revenue rose 17 percent, with bond trading showing a 45 percent jump and equity remaining flat in its second quarter.

Net income applicable to Morgan Stanley's shareholders rose 43 percent to $2.27 billion in the quarter ended June 30.

On an adjusted basis, the bank earned $1.25 per share, beating the average analyst estimate of $1.11 per share, according to Thomson Reuters I/B/E/S data.

Morgan Stanley's net revenue rose 11.6 percent to $10.61 billion, with institutional securities accounting for 53.8 percent of the gains. Institutional securities business comprises the bank's investment banking and trading units.

(Reporting By Aparajita Saxena in Bengaluru; Editing by Saumyadeb Chakrabarty)

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