Morgan Stanley BNY PNC second quarter profits rise record trading dealmaking fees
Wall Street is cashing in on the AI deal wave: Morgan Stanley $MS Q2 profit jumped to $5.6 billion from $3.5 billion a year ago on record equities trading, while BNY $BK and PNC $PNC also beat estimates on higher fees. Per company earnings releases.
Wall Street's fee machine is running hot on the AI boom. Morgan Stanley $MS reported second-quarter net income of $5.6 billion, or $3.46 per share, up from $3.5 billion and $2.13 a year earlier, on revenue of $21.3 billion, up 27%. Equities trading revenue hit a firm record of $6.3 billion, up 69%, and investment banking brought in $2.44 billion on large deals. BNY $BK earned $1.7 billion, up from $1.39 billion, with earnings per share of $2.45 and record revenue of $5.7 billion, up 13%, driven by higher fee income. PNC Financial Services $PNC posted $2.06 billion for common shareholders, or $4.81 per share, beating the $4.54 analysts expected, on record revenue. The pattern across the quarter: profits are being driven by trading, dealmaking and fees tied to the AI investment wave rather than by traditional lending, which means the AI capex cycle is now a material earnings driver for the banking system itself. Per Reuters, RTE and company earnings releases.