Morgan Stanley (NYSE:MS) stock rose 0.25% (As on July 17, 11:29:00 AM UTC-4, Source: Google Finance) after the company said second-quarter profit and revenue topped analysts’ estimates on stronger-than-expected trading and investment banking results. The bank said profit surged 41% from the year-earlier period to $3.08 billion, helped by a rebound in Wall Street activity. Wealth management revenue rose 2% to $6.79 billion, below the $6.88 billion estimate, and interest income plunged 17% from a year earlier to $1.79 billion. Morgan Stanley said that’s because its rich clients were continuing to shift cash into higher-yielding assets, thanks to the rate environment, resulting in lower deposit levels. Net new assets came in at $36.4 billion, below last year’s $89.5 billion. Equity trading generated an 18% jump in revenue to $3.02 billion, exceeding the StreetAccount estimate by about $330 million. Fixed income trading revenue rose 16% to $1.99 billion, topping the estimate by $130 million. Investment banking revenue surged 51% to $1.62 billion, exceeding the estimate by $220 million, on rising fixed income underwriting activity. Morgan Stanley said that was primarily driven by non-investment-grade companies raising debt.

Further, Equity underwriting revenue jumped 56% to $352 million, driven by a rebound in initial public offerings and private stock sales, while fixed income underwriting surged 71% to $675 million. Advisory revenues climbed 30% to $592 million as the company closed more deals. During the quarter, the Firm accreted $1.5 billion of Common Equity Tier 1 capital while supporting the clients and executing capital actions, and ended the quarter with a Standardized Common Equity Tier 1 capital ratio of 15.2%.

MS in the second quarter of FY 24 has reported the adjusted earnings per share of $1.82, beating the analysts’ estimates for the adjusted earnings per share of $1.65, according to LSEG estimate. The company had reported the adjusted revenue growth of 12 percent to $15.02 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $14.3 billion.

Additionally, Morgan Stanley said it would raise its quarterly dividend to $0.925 per share, up 7.5 cents. The Firm reauthorized a multi-year repurchase program of up to $20 billion of outstanding common stock without a set expiration date.

The company has set a target of managing $10 trillion in client assets, which stood at $7.2 trillion in the second quarter. The company told the analysts the wealth unit is growing within the bank’s expected range of 5% to 7% annually, even as net asset inflows slowed.