July 18 (Reuters) - Morgan Stanley's profit beat estimates as growth in its wealth management business offset lower trading revenue in the second quarter, and executives expressed optimism about the economic environment.
Morgan Stanley (MS.N) shares rose more than 6%, shrugging off the 14% drop in profits.
Excluding one-off items, Morgan Stanley earned $1.24 a share on revenue of $13.46 billion, comfortably beating estimates of $1.15 a share on $13.08 billion revenue, according to data from Refinitiv IBES.
Still, "we expect investment banking to lead the recovery in the next quarter," she said.
The Wall Street giant followed rivals including JPMorgan Chase and Citigroup in reporting tepid trading results.
Persons:
Morgan, Morgan Stanley, James Gorman, Brennan Hawken, Sharon Yeshaya, Morgan Stanley's, James Shanahan, Edward Jones, Gorman, Ted Pick, Andy Saperstein, Dan Simkowitz, Tatiana Bautzer, Mehnaz Yasmin, Niket, Lananh Nguyen, Arun Koyyur, Louise Heavens, Nick Zieminski
Organizations:
UBS, JPMorgan Chase, Citigroup, Bank of America, Reuters, Thomson
Locations:
New York, Bengaluru