Morgan Stanley, the renowned U.S. bank, released its second-quarter earnings report, showcasing a substantial increase in profits and a rebound in investment banking activity. The company's Wall Street-centric business model proved successful this quarter, with investment banking revenues soaring by 51% compared to the previous year, amounting to $1.62 billion.

The bank's second-quarter earnings per share (EPS) stood at $1.82, a significant jump from $1.24 reported a year ago. This surpasses the consensus estimate of $1.65. Additionally, sales for the quarter reached $15.02 billion, marking an 11.6% year-over-year increase, exceeding the projected $14.30 billion.

Morgan Stanley achieved a balance in sales across its Wealth Management and Institutional Securities divisions. CNBC highlighted the success of its Wall Street-focused model, where a resurgence in trading and investment banking activities resulted in higher revenue in the institutional securities division compared to wealth management, a reversal of the typical trend.

The Institutional Securities division reported net revenues of $6.98 billion, reflecting robust performance across the franchise. This positive growth was driven by Equity, which experienced higher client activity, and Investment Banking, where strong debt underwriting led to significant results. Investment banking revenues surged by an impressive 51% to $1.62 billion, while Advisory revenues reached $592 million due to increased completed mergers and acquisitions transactions. Equity net revenues also saw an 18% year-over-year increase, totaling $3.02 billion, thanks to strong performance in various business lines and regions, especially Asia.

Furthermore, Morgan Stanley's Fixed-income trading revenue rose by 16%, amounting to $1.99 billion, and provision for credit losses decreased, primarily due to lower provisions on corporate loans compared to the previous year's quarter.

Within the Wealth Management division, net revenues for the second quarter were $6.8 billion, slightly higher than the $6.7 billion reported a year ago.

CEO Ted Pick expressed his satisfaction with the company's performance, stating, "The firm delivered another strong quarter in an improving capital markets environment. We continue to execute on our strategy and remain well positioned to deliver growth and long-term value for our shareholders."

During a conference call, Morgan Stanley's CFO mentioned the bank's progress in reaching a $10 trillion client asset target and indicated that the Investment Banking business is still in the early stages of recovery.

In terms of stock performance, Morgan Stanley's shares were down by 2.92% during the premarket session, trading at $102.19.

Morgan Stanley's impressive earnings report and rebound in investment banking activities demonstrate the strength of its business model, positioning the bank well for sustained growth and long-term value delivery to shareholders.