Underlying profits at Morgan Stanley's institutional securities arm in the three months to June 30 were more than five times those posted in the same period a year ago, led by equity underwriting and sales and trading, which both posted both quarter-on-quarter and year-on-year gains.

The US bank this morning reported underlying total revenues in the institutional securities division of $4.2 billion over the second quarter, up around 40% year-on-year, but down 5% quarter on quarter.