NEW YORK – Investment bank Morgan Stanley reported net revenues of $9.5 billion for the second quarter ended June 30, 2017 compared with $8.9 billion a year ago. For the current quarter, net income applicable to Morgan Stanley was $1.8 billion compared with net income of $1.6 billion for the same period a year ago.
Compensation expense of $4.3 billion increased from $4.0 billion a year ago driven by higher revenues. Non compensation expenses of $2.6 billion increased from $2.4 billion a year ago, reflecting a provision related to a U.K. indirect tax matter and higher volume driven expenses. The Firm’s expense efficiency ratio for the current quarter was 72%.
James Gorman, Chairman and Chief Executive Officer of Morgan Stanley, said, “Our second quarter results demonstrated the resilience of our franchise in a subdued trading environment. Our wealth management business produced a 25% margin and our strong investment banking results attest to the diversity of our global business.”
Investment banking revenues increased in the quarter from $1.1 billion a year ago to $1.4 billion. Sales and trading revenues dropped slightly from $3.3 billion to $3.2 billion.
The company reported assets under management of $435 billion at the end of June.