Morgan Stanley Q2 Profit Jumps - Quick Facts

(RTTNews) - Investment bank Morgan Stanley (MS) posted significantly higher second-quarter income from continuing operations applicable to the company of $1.9 billion, or $0.94 per share, compared with $1.0 billion, or $0.43 per share, last year.

Results for the quarter included a net discrete tax benefit of $609 million or $0.31 per share, related mainly to the remeasurement of reserves and related interest, the company said. The earnings per share calculation for the prior-year quarter included a negative adjustment of some $151 million, or $0.08 per share, related to the purchase of the final remaining interest in the Morgan Stanley Smith Barney Joint Venture.

The latest quarter's results included positive revenue related to the change in the fair value of certain of the Firm's long-term and short-term borrowings resulting from the fluctuation in the firm's credit spreads and other credit factors (Debt Valuation Adjustment, DVA) of $87 million, versus the prior year's $175 million. Excluding DVA, non-GAAP income per share from continuing operations totaled $0.91 per share for the current quarter.

Quarterly reported net revenues were $8.6 billion, compared with $8.5 billion a year before. Excluding DVA, second-quarter net revenues reached $8.5 billion, versus $8.3 billion in the year-ago quarter.