By Peter Rudegeair and Liz Hoffman 

Morgan Stanley said its profit fell in the second quarter as the company weathered volatile markets that affected its investing and corporate clients.

Earnings and revenue, however, beat expectations, pushing shares up 2% premarket.

The bank's net income declined to $1.58 billion, or 75 cents a share, from $1.81 billion, or 85 cents a share, a year ago. Analysts polled by Thomson Reuters had expected a per-share profit of 59 cents.

Revenue tumbled to $8.91 billion. Analysts had forecast $8.3 billion.

Morgan Stanley Chairman and CEO James Gorman has been working to boost profitability by trimming the capital committed to bond trading desks and boosting loans to investing clients of the firm's large wealth management division. Earlier this year, the firm also disclosed its aim to cut $1 billion in expenses, a theme that has gained momentum at banks from Goldman Sachs Group Inc. to Bank of America Corp. this quarter.

Morgan Stanley shares have tumbled 11% this year as investors fretted over the firm's ability to weather the slowdown. Other banks reported better-than-expected trading results in the second quarter, driven in part by a burst of client activity around the U.K. vote to leave the European Union in June.

Write to Peter Rudegeair at Peter.Rudegeair@wsj.com and Liz Hoffman at liz.hoffman@wsj.com

 

(END) Dow Jones Newswires

July 20, 2016 07:16 ET (11:16 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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