Citigroup's profit rose in the second quarter as its traders brought in a windfall from turbulent markets. The third-largest U.S. lender's net income was $4 billion, or $1.96 per share, in the three months ended June 30,

The turbulence spurred trading as investors repositioned their portfolios and hedged risks, driving gains in Morgan Stanley's trading business. Revenue reached $16.8 billion in the second quarter, compared with $15 billion, a year earlier.

Morgan Stanley Chief Executive Officer Ted Pick said “the tide may begin to shift” in the ocean of private credit.