Morgan Stanley (MS  ) reported Q2 earnings per share of $1.24, beating the consensus of $1.15. Revenues reached $13.46 billion, up 2% Y/Y, vs. expected $13.08 billion and down 7% sequentially.

The bank's profit declined 13% to $2.18 billion as Wall Street's deal-making drought stunted revenue from investment banking.

Revenue from investment banking stood at $1.16 billion, in line with last year.

"The firm delivered solid results in a challenging market environment," James Gorman, Chairman & CEO, said, "The quarter started with macroeconomic uncertainties and subdued client activity but ended with a more constructive tone."

Despite lower market levels that caused some fees to dip from a year ago, second-quarter wealth management revenue rose 16% to $6.66 billion on higher interest income. The segment delivered strong net new client assets of $90 billion.

The institutional securities business posted an 8% decline in revenue to $5.65 billion, reflecting continued muted activity in Investment Banking and a decline in Equity and Fixed Income driven by lower client activity in a less favorable market environment than a year ago.

Price Action: MS shares are up 0.37% at $86.69 during the premarket session on the last check Tuesday.