Morgan Stanley (MS) shares today, on July 19, are edging lower 0.44% on the U.S. premarket after yesterday’s jump by 6.45%, after the investment bank posted Q2 earnings and revenue that generally beat analysts’ expectations, propped up by record wealth management results.

MS’s earnings came in at $1.24 a share vs. $1.15 per share consensus estimate, while revenue grew to $13.46 billion vs. expected $13.08 billion. EPS came in at $1.24 over the period, compared with the consensus estimate of $1.21, down from $1.70 in Q1 but up from $1.39 in the same period last year. Importantly, last quarter included $308 million in severance payments, while the provision for credit losses stood at $161 million, compared with the consensus of $113 million, $234 million in the prior quarter and $101 million in the year-ago same quarter.

Return on average tangible equity fell to 12.1% from 16.9% in the first quarter of 2023 and 13.8% in the second quarter of 2022.

Sales by market segment looked the following way: Institutional Securities unveiled $5.65 billion, down a whopping 17% QoQ and 8% annually. Wealth management posted US$6.66 billion of aggregate sates, up 2% QoQ and 16% YoY. For Investment management division revenues eased to US$1.28 billion, down 1% QoQ and 9% YoY.

At P/E of around 16X, MS is still moderately valued, but the growth of the loan loss provisions amid known turbulence across broader banking sector, poses certain questions aboout the company’s overall performance in 2023.