Wall Street is hot, Morgan Stanley's net profit soars 58%
Net profit in the second quarter surged 58% year-on-year. Driven by the hype around the concept of artificial intelligence, the market is booming, giving full play to the bank's long-term advantages in stock trading business. The Wall Street investment bank disclosed that its net profit for the quarter reached US$5.6 billion, compared with US$3.5 billion in the same period last year, exceeding market expectations of US$4.7 billion. Revenue from the stock trading business surged nearly 70% to $6.3 billion. its competitors It also reported stellar quarterly results for its stock trading business on Tuesday. The five investment banks’ stock trading business revenue totaled US$25.7 billion, a year-on-year increase of more than 70%. The current capital market continues to heat up due to artificial intelligence-related investments, and major Wall Street investment banks are earning huge profits by matching and financing various AI-related transactions. Morgan Stanley's financial report is the latest evidence. Morgan Stanley's investment banking revenue surged nearly 60% to US$2.4 billion, slightly higher than analysts' expectations of US$2.2 billion, including US$100 million in service fees for undertaking SpaceX's large initial public offering project. The wealth management business contributed about 40% of the bank's profits last year. The business's net inflow of new assets in the second quarter was US$148 billion, far exceeding market expectations of US$67 billion. This data is closely watched by investors and is a core indicator of the growth trend of the business. This quarter, the bank’s wealth management segment and smaller asset management segment combined customer assets under management to exceed US$10 trillion. Morgan Stanley shares rose 0.3% in early pre-market trading. Boosted by outstanding financial reports from other investment banks, the stock closed up 3% on Tuesday.