the bank still handily beat market expectations, helping to push
up its shares 2.8 percent to $26.49 in light premarket trading
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.
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 <GS.N>, Morgan Stanley's traditional
rival, will wrap up the earnings season for big U.S. banks on
"The first quarter was characterized by challenging market
conditions and muted client activity," Chief Executive James
Gorman said in a statement.
"While we see some signs of market recovery, global
uncertainties continue to weigh on investor activity."
Morgan Stanley's stock fell about 21 percent in the quarter -
the sharpest decline of any big U.S. bank.
Adjusted revenue from fixed income and commodities trading fell
54.1 percent to $873 million in the quarter, while equities
trading revenue declined 9.3 percent to $2.06 billion.
Morgan Stanley has been shifting its focus away from more
volatile areas such as bond trading and towards more stable
businesses such as wealth management
Revenue from wealth management fell 4.3 percent to $3.67 billion
during the quarter.
(Reporting by Richa Naidu; Editing by Ted Kerr)
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