Morgan Stanley's Q2 profits beat market forecast

Morgan Stanley Thursday reported better-than-expected earnings for the second quarter of 2014, thanks to strong performance of investment banking and wealth management business.
For the second quarter, net income applicable to Morgan Stanley, including discontinued operations, amounted to 1.9 billion U.S. dollars or 0.94 dollar per diluted share, compared with net income of 980 million dollars or 0.41 dollar per diluted share in the second quarter of 2013.
Excluding debt valuation adjustment (DVA), Morgan Stanley's net revenues for the second quarter reached 8.5 billion dollars compared with 8.3 billion dollars a year ago.
The bank revealed that results for the quarter included a net tax benefit of 609 million dollars or 0.31 dollar per diluted share, related to the re-measurement of reserves and related interest.
"We are seeing momentum across our businesses, with particular strength in investment banking, equity sales and trading and wealth management -- where profit margins hit 21 percent, and assets entrusted to us by clients reached 2 trillion dollars," said James Gorman, chairman and chief executive officer of Morgan Stanley.