Investment bank Morgan Stanley on Tuesday said its quarterly earnings more than doubled, driven by its investment banking businesses and strong trading revenue from fixed income and equities.
The New York firm's second-quarter net income rose to $1.22 billion, or $1.10 per share, from $599 million, or $0.55 per share, a year ago.
The increase comes as Morgan Stanley and other banks work to weather the changing interest rate environment. As borrowing costs rise, banks have tried to bolster revenues from mergers advisory and stock underwriting to make up for an expected decline in fixed income.
Shares in the company rose by 25 cents to $51.50 pre-market trade on INET trading system.
On average, analysts had expected net income of $1.05 a share, according to Reuters Estimates.
Revenue for Morgan Stanley's second quarter rose 32 percent from the same period last year to $6.7 billion.
Revenues from fixed income sales and trading rose by 43 percent to $1.8 billion form last year's second quarter, while revenue from sales and trading of equities rose by 29 percent to $1.1 billion.
Revenue earned from advising companies on mergers and acquisitions, one of its most lucrative businesses, rose by 130 percent to $324 million.