Morgan Stanley's quarterly profit rises 11.4%

[NEW YORK] Morgan Stanley reported an 11.4 per cent rise in quarterly profit on Wednesday, driven by strength in its investment banking and wealth management businesses.

Earnings applicable to common shareholders rose to US$1.59 billion in the second quarter ended June 30 from US$1.43 billion a year earlier. Earnings per share rose to 87 US cents from 75 US cents.

Analysts on average had expected earnings of 76 US cents per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the figures were comparable.

Investment banking revenue rose 25 per cent to US$1.53 billion.

Arch-rival Goldman Sachs Group reported a 40 per cent drop in bond trading revenue on Tuesday.

Morgan Stanley, the sixth-largest US bank by assets, wraps up the quarterly earnings season for the big lenders.

REUTERS