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EARNINGS-Morgan Stanley profit jumps 45% on trading boom

Credit: REUTERS/BRENDAN MCDERMID

Morgan Stanley posted a better-than-expected surge in quarterly profit on Thursday, driven by strong trading gains as the coronavirus pandemic drove record swings in global financial markets.

Adds details on segments, analyst estimates

July 16 (Reuters) - Morgan Stanley MS.N posted a better-than-expected surge in quarterly profit on Thursday, driven by strong trading gains as the coronavirus pandemic drove record swings in global financial markets.

The bank's trading unit recorded a 68% jump in revenue, led by a nearly 168% surge in bond trading. Equities trading revenue rose 23%. The results mirrored those of rival Goldman Sachs Holdings Inc GS.N, which posted its best trading revenue in a decade.

Investment banking was another bright spot for Morgan Stanley, where revenue jumped 39% as businesses continued to access the market to benefit from the lower rate environment and to raise liquidity.

Morgan Stanley set aside $239 million as provisions for credit losses, down from $407 million in the previous quarter.

The bank's earnings attributable to common shareholders rose to $3.2 billion, or $1.96 per share, in the second quarter ended June 30, from $2.2 billion, or $1.23 per share, a year ago.

Analysts on average had expected a profit of $1.12 per share, according to IBES data from Refinitiv.

(Reporting by C Nivedita and Elizabeth Dilts in New York; Editing by Saumyadeb Chakrabarty)

((C.Nivedita@thomsonreuters.com; within the U.S. +1 646 223 8780, outside the U.S. +91 80 6182 2626; Twitter: @NivCholayil;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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