11:06 AM EDT, 07/16/2024 (MT Newswires) -- Morgan Stanley's ( MS ) second-quarter results gained year over year and topped market expectations, buoyed by a 51% jump in investment banking revenue.

The lender on Tuesday reported per-share earnings of $1.82 for the June quarter, up from $1.24 last year and surpassing the Capital IQ-polled consensus of $1.65. Revenue climbed to $15.02 billion from $13.46 billion, ahead of the Street's view for $14.31 billion.

"The firm delivered another strong quarter in an improving capital markets environment," Chief Executive Ted Pick said in a statement. "We continue to execute on our strategy and remain well positioned to deliver growth and long-term value for our shareholders."

Revenue from the institutional securities division advanced to $6.98 billion from $5.65 billion in the prior-year quarter. Within segments, investment banking revenue jumped 51% year over year, driven by increased advisory revenue from a higher number of completed merger and acquisition deals, as well as equity and fixed income underwriting gains. Equity net revenue surged 18%, while fixed income grew by 16%.

Wealth management revenue gained 2% to $6.79 billion, aided by transactional and asset management sales growth. However, net interest income decreased to $1.8 billion from $2.16 billion last year, reflecting "cash redeployments" by customers amid high interest rates, resulting in lower average sweep deposits.

Investment management revenue improved 8% to $1.39 billion, helped by advances in asset management and related fees. Assets under management totaled $1.518 trillion at the end of June, compared with $1.412 trillion a year earlier.

Morgan Stanley's ( MS ) provision for credit losses decreased to $76 million from $161 million in the prior-year quarter. Total noninterest expenses rose to $10.87 billion from $10.48 billion a year ago.

The bank intends to make changes to its advisory sweep rates in the third quarter against the "backdrop of changing competitive dynamics," Chief Financial Officer Sharon Yeshaya said during an earnings call, according to a Capital IQ transcript. As a result, the company's net interest income in the ongoing three-month period is expected to be primarily driven by "the path of sweeps" and could decline "modestly," Yeshaya said.

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