Wealth mgt biz gives 11.4% push to Morgan Stanley's quarterly profit

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

Analysts on average had expected earnings of 76 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 $1.53 billion.

Arch-rival Goldman Sachs Group Inc 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.