According to Morgan Stanley CEO James Gorman, the worst of investment banking losses is over on banking sector balance sheets.
Morgan Stanley CEO James Gorman predicted that the worst period in investment banking and trading revenues in the US banking sector is behind.
In an interview with Bloomberg TV on Tuesday, Gorman said he expects a revival in the industry but does not expect it to start before next year.
During the day, Morgan Stanley announced its second quarter balance sheet, and transaction revenues were below analysts’ expectations. The bank’s investment banking revenues beat estimates.
After Gorman’s comments, Morgan Stanley stocks recorded their strong daily gains since November 2020.
The net profit of the bank in the second quarter of this year decreased by 13 percent compared to the same period of last year, to $ 2.2 billion. The company had a net profit of $ 2.5 billion in the second quarter of 2022.
Earnings per share, which was $1.39 in the second quarter of last year, was $1.24 in the same period of this year.
Morgan Stanley’s revenue in the second quarter of this year increased by 2 percent compared to the same period last year, reaching $13.5 billion. The bank’s revenue was recorded as $13.1 billion in the second quarter of 2022.