Morgan Stanley Q1 profit falls 54 percentStaff writer ▼ | April 18, 2016
Morgan Stanley posted a 54% drop in first-quarter net income as revenue from the trading and investment banking divisions were dented by market volatility.
Morgan Stanley First-quarter net income came in at $1.1bn
Earnings came in better than expectations of $0.46 but revenue was a touch short of forecasts for $7.9bn.
Chairman and chief executive officer James P. Gorman said: "The first quarter was characterised by challenging market conditions and muted client activity. Against that backdrop, our businesses delivered stable results.
"While we see some signs of market recovery, global uncertainties continue to weigh on investor activity. We remain focused on executing against our priorities, helping clients navigate difficult markets while controlling our expenses and managing risk prudently."
In terms of divisions, trading revenue slid 34% to $2.69bn in the first quarter, while fixed income trading revenue was down 56% to $873m and equity trading revenue was 10% lower at $2.06bn.
In the investment banking business, revenue dropped to $990m from $1.17bn in the same quarter the year before. ■