Morgan Stanley’s profit jumps as investment banking recovers

Morgan Stanley’s (MS.N), opens new tab profit rose in the second quarter as investment banking activity rebounded.

Its net income rose to $3.1 billion, or $1.82 per share, in the three months ended June 30, the bank said on Tuesday. That compares with $2.2 billion, or $1.24 per share, a year earlier.

An improving economic outlook, expectations of U.S. interest rate cuts and surging equity markets have spurred corporate executives to carry out buyouts, debt sales and stock offerings after a nearly two-year dry spell for Wall Street.