Morgan Stanley Logs Smaller-Than-Expected Declines in Profit, Revenue
July 20 2016 - 07:31AM
Dow Jones News
By Peter Rudegeair and Liz Hoffman
Morgan Stanley said its profit fell in the second quarter as the
company weathered volatile markets that affected its investing and
corporate clients.
Earnings and revenue, however, beat expectations, pushing shares
up 2% premarket.
The bank's net income declined to $1.58 billion, or 75 cents a
share, from $1.81 billion, or 85 cents a share, a year ago.
Analysts polled by Thomson Reuters had expected a per-share profit
of 59 cents.
Revenue tumbled to $8.91 billion. Analysts had forecast $8.3
billion.
Morgan Stanley Chairman and CEO James Gorman has been working to
boost profitability by trimming the capital committed to bond
trading desks and boosting loans to investing clients of the firm's
large wealth management division. Earlier this year, the firm also
disclosed its aim to cut $1 billion in expenses, a theme that has
gained momentum at banks from Goldman Sachs Group Inc. to Bank of
America Corp. this quarter.
Morgan Stanley shares have tumbled 11% this year as investors
fretted over the firm's ability to weather the slowdown. Other
banks reported better-than-expected trading results in the second
quarter, driven in part by a burst of client activity around the
U.K. vote to leave the European Union in June.
Write to Peter Rudegeair at Peter.Rudegeair@wsj.com and Liz
Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
July 20, 2016 07:16 ET (11:16 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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