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Morgan Stanley profit slumps 54.4 pct

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Reuters
Last Updated : Apr 18 2016 | 4:43 PM IST

REUTERS - Morgan Stanley's quarterly profit more than halved as the Wall Street bank's trading and investment banking businesses took a hit from market volatility early in the year.

Earnings applicable Morgan Stanley's common shareholders fell 54.4 percent to $1.06 billion, or 55 cents per share, in the quarter ended March 31, from $2.31 billion, or $1.18 per share, a year earlier. Excluding an accounting adjustment, the bank also earned 55 cents per share.

Analysts on average had expected earnings of 46 cents per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported figures were comparable.

Sliding commodity and oil prices, worries about the Chinese economy and uncertainty about U.S. interest rates made for wobbly markets in January and February, scaring off traders, investors and companies hoping to list on stock exchanges.

All of the big U.S. banks that have released results for the first quarter have reported lower revenue from investment banking and trading.

Goldman Sachs Group Inc , Morgan Stanley's traditional rival, will wrap up the earnings season for big U.S. banks on Tuesday.

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(Reporting by Richa Naidu; Editing by Ted Kerr)

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First Published: Apr 18 2016 | 4:35 PM IST

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