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Investment banks like Morgan Stanley suffered during last year’s slump in corporate mergers, but a renewed appetite for dealmaking is finally bringing in fees.
The New York-based company enjoyed 51% growth in revenues from its investment banking activities last quarter, far outstripping the more subdued improvement in its wealth management business. Revenues from arranging large mergers or corporate debt deals also jumped in the second quarter, a sign that Wall Street’s bread-and-butter business is returning to full gear.
“The firm delivered another strong quarter in an improving capital markets environment,” Ted Pick, who became Morgan Stanley’s CEO this year, said in a news release.
Morgan Stanley’s earnings grew to more than $3 billion in the second quarter, up from $2.2 billion a year earlier.