Morgan Stanley has reported a 30 per cent year-on-year fall in second-quarter net income as investment banking fees plunged amid a dramatic slowdown in stock market listings.
The Wall Street bank said on Thursday that net income applicable to shareholders was $2.4bn or $1.39 per share, down from $3.4bn or $1.96 per share in the same period last year. Analysts had forecast quarterly net income of $2.75bn or $1.58 per share, according to data compiled by Bloomberg.
The bank’s net revenues for the second quarter were $13.1bn, down 11 per cent from a year earlier, and slightly lower than analysts’ expectations of $13.2bn.
Investment banking revenue fell 55 per cent to $1.07bn, compared with analysts’ estimates of $1.3bn. Revenues from trading, which benefited from recent market volatility, were up 7 per cent at $5bn, in line with analysts’ estimates.
Revenues in wealth management, which includes online trading platform ETrade, were down 6 per cent at $5.7bn, missing estimates for $6bn.
In investment management, which houses Eaton Vance following Morgan Stanley’s acquisition of the money manager last year, revenue fell 17 per cent to $1.4bn, in line with analysts’ estimates.
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