Morgan Stanley CEO: The worst is over

According to Morgan Stanley CEO James Gorman, the worst of the investment banking losses on the banking sector's balance sheets are over. Morgan Stanley CEO James Gorman predicted that the worst period in the US banking sector is over in investment banking and trading revenues. Speaking to Bloomberg TV on Tuesday, Gorman said he expected a recovery in the sector but did not expect it to start before next year. Morgan Stanley announced its second-quarter earnings during the day, and trading revenues fell short of analysts' expectations. The bank's investment banking revenues, on the other hand, exceeded estimates. After Gorman's statements, Morgan Stanley shares recorded their strong daily increase since November 2020. The bank's net income in the second quarter of this year decreased by 13 percent compared to the same period last year, falling to $2.2 billion. The company had made a net income of $2.5 billion in the second quarter of 2022. The institution's earnings per share, which was $1.39 in the second quarter of last year, was $1.24 in the same period this year. Morgan Stanley's revenue in the second quarter of this year increased by 2 percent compared to the same period last year, reaching $13.5 billion. The bank's revenue was recorded as $13.1 billion in the second quarter of 2022.