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o r i g i nat i o n s e r v i c i n g a na ly t i c s s e c o n da r y M a r k e t ORIGINATION the latest Morgan stanley reports Q2 net revenues of $9.7 Billion Client-centric approach, sensible expenses, and careful risk management underscore the achievement, CEO says. n et revenues for Morgan Stanley reached $9.7 billion for the second quarter ending June 30, compared with $9.9 billion in the first quarter of 2015 and $8.6 billion a year ago, according to the company's second-quarter earnings statement. Morgan Stanley noted that its revenues for the second quarter reflect robust performance in equity sales and trading, strong results in investment banking, and continued progress in fixed income and commodities sales and trading. According to the statement, net income for Morgan Stanley was $1.8 billion, or $0.85 per diluted share, for the current quarter, com- pared with net income of $1.9 bil- lion, or $0.92 per diluted share, for the same period a year ago. The earnings for the prior year second quarter included a net discrete tax benefit of $609 million, or $0.31 per diluted share, principally related to the re-measurement of reserves and related interest. "We delivered a strong quarter across each of our businesses, through client-focused execution, expense discipline, and prudent risk management," said James P. Gorman, chairman and CEO of Morgan Stanley. "We remain fo- cused on delivering the long-term value of this franchise." Excluding DVA, net revenues for the current quarter were $9.6 billion compared with $8.5 bil- lion a year ago, Morgan Stanley reported. Excluding DVA and the net discrete tax benefit in the prior year quarter, net income applicable to Morgan Stanley was $1.7 billion, or $0.79 per diluted share, compared with net income of $1.2 billion, or $0.58 per diluted share, in the prior year. Institutional securities reported pre-tax income from continuing operations of $1.6 billion compared with pre-tax income of $960 mil- lion in the second quarter of last year, according to the earnings statement. Net revenues for the current quarter were $5.2 billion compared with $4.2 billion a year ago. Excluding DVA, net revenues for the current quarter totaled $5 billion, compared with $4.2 billion a year ago. Wealth management reported pre-tax income from continuing operations of $885 million compared with $763 million in the second quarter of last year. The quarter's pre-tax margin was 23 percent. Net revenues for the current quarter were $3.9 billion compared with $3.7 billion a year ago. Investment management re- ported pre-tax income from con- tinuing operations of $220 million compared with pretax income of $209 million in the second quarter of last year. chase and Wells Fargo earnings statements indicate strong Q2 results Both banks enthusiastically report solid numbers in the second quarter. B oth JPMorgan Chase and Wells Fargo posted strong financial results in the second quarter, with Chase experiencing a 5 percent jump in net income, according to earnings statements released by both banks. Chase's Q2 net income of $6.29 billion represented an increase of 5 percent from the same quarter a year ago, while the New York- based bank's period-end balance sheet was down $123 billion in the second quarter. The firm's core loans were up 12 percent year- over-year in Q2, while the loan-to- deposit ratio of 61 percent in Q2 was a jump of 5 percent from the previous quarter. Consumer and business banking average deposits were up by 9 percent. The net revenue for Chase in Q2, $24.5 billion, was down by 3 percent year-over-year, largely due to a drop in mortgage banking revenue and lower CIB Markets revenue related to business simplification. Chase's mortgage banking net income de- clined by 20 percent in Q2, down to $584 million. The substantial decline in mortgage banking was partially offset by asset management growth, according to Chase. "Our company had strong re- sults this quarter, and each of our businesses performed well, with broad and consistent underlying growth," said Jaime Dimon, chair- man and CEO of Chase. "This quarter was another example of the power of our platform and risk discipline and of being there for our clients—as we always are—in good times and in volatile markets." Wells Fargo's net income of $5.7 billion for Q2 was virtually un- changed from the same quarter a year ago, while net revenue ticked upward by 1 percent up to $21.3 billion. The San Francisco-based bank saw average loans increase by 5 percent year-over-year in Q2, up to $870.4 billion. Average deposits climbed by 8 percent year-over-year, up to $1.2 trillion. Credit quality also improved as net charge-offs declined by $67 million year-over-year in Q2 down to $650 million, according to the bank's statement. "Wells Fargo's second-quarter results reflected continued strength in the fundamental drivers of long-term growth," said John Stumpf, chairman and CEO of Wells Fargo. "Compared with a year ago, we grew loans, deposits, and capital, and our balance sheet remained strong. Credit results also improved and we continued to adhere to our disciplined approach to risk management. As the economic and interest rate environments evolved, our diversified business model continued to generate strong results for shareholders, and we were pleased to increase our common stock dividend 7 percent in the second quarter, to $0.375 per share. Wells Fargo is well positioned for the future and I remain confident in the ability of our 266,000 team members to help our customers succeed financially and to serve our communities."