CNBC's Leslie Picker joins 'Squawk Box' to break down Goldman Sachs and Morgan Stanley's quarterly earnings results.

New York

Goldman Sachs and Morgan Stanley released their latest quarterly earnings, both surpassing analyst expectations on revenue and profit. Goldman Sachs saw significant gains in its global banking and markets division, with revenue up 24% year over year, and a record performance in equity trading. However, its asset and wealth management division experienced a slight decline in revenue. Morgan Stanley also exceeded expectations, with strong performance in equities and fixed income trading, though its investment banking fees and advisory revenue declined. The firm's wealth management division reported substantial net new assets, but overall expenses were higher than anticipated. Despite some mixed results across divisions, both banks reported robust returns on equity.

Goldman Sachs, Morgan Stanley earnings top estimates

Goldman Sachs and Morgan Stanley just releasing quarterly results. Goldman Sachs is trading higher. Let's get over to Leslie Picker. She's looking through the numbers on that. Hey Leslie. Hey Becky. Yeah. Goldman Sachs reporting top and bottom line beats driven by huge gains in the business that advises on acquisitions as well as equity trading. The firm's global banking and markets division which houses those two businesses generated 10 billion in revenue up 24 percent year over year advisory which largely comprises M&A banking raked in more than a billion dollars and was up 71 percent year over year. Equity underwriting was up slightly while debt underwriting was slightly down. Goldman said its investment banking fees backlog is higher compared with the first quarter and then the end of 2024 as well. Within trading equity surged 36 percent year over year to four point three billion a record for that group. Fixed income currencies and commodities gained 9 percent to three point five billion dollars in revenue during the quarter. Asset and wealth management a smaller but key growth area for the firm. They did see revenue decline about 3 percent year over year to three point eight billion. The division was dragged down by some debt investments on the balance sheet. CEO David Solomon saying in the release quote at this time the economy and markets are generally responding positively to the evolving policy environment. But as developments rarely unfold in a straight line we've remained very focused on risk management. Return on equity of twelve point eight percent was nearly two percentage points higher than a year ago although lower than Q1. Turning to Morgan Stanley that firm also beating on the top and bottom lines in all three divisions surpassing the streets expectations trading a bright spot here with equities revenue jumping 23 percent fixed income up 9 percent during the quarter. Total investment banking fees though those were lower for Morgan Stanley by nearly 5 percent. Advisory which manages M&A declined 14 percent. Equity capital markets though the unit that manages IPOs and follow on offerings that gained 42 percent to half a billion dollars. Debt capital markets revenue slumped by 21 percent during the quarter. Morgan Stanley's wealth management division brought in 59 billion in net new assets and 43 billion in fee based assets during the quarter. Net revenues were up 14 percent to seven point eight billion for that division. And investment management revenue was up about 12 percent. Expenses though guys coming in higher here than the street expected. Compensation expense was seven point two billion above analyst estimates while non-comp expense was also slightly higher than expectations. Still return on tangible common equity was 18 point 2 percent in the quarter. Nothing to sneeze at. You can see Morgan Stanley shares very little change in pre-market on these results. I'll send it back to you.

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Breakdown