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Revenue from the wealth management unit rose slightly in the
first quarter, bouncing back from a drop in the preceding
quarter, and was the only bright spot in an otherwise bleak
report.
The company has been striving to grow its wealth management
business, which provides financial advice to wealthy clients, to
reduce its dependence on trading, which is more exposed to
swings in market volatility.
Trading for Morgan Stanley, as with other large Wall Street
banks, was weak. Revenue from sales and trading fell 15 percent
to $3.74 billion, with equities trading slipping 21 percent.
Market activity slowed considerably in the first quarter of the
year as concerns over the U.S.-China trade war eased and markets
rebounded from steep losses in December 2018.
Rival Goldman Sachs Group Inc on Monday reported an 18 percent
drop in overall trading, with equities slipping 24 percent.
Morgan Stanley's investment banking revenue dropped 24 percent,
hurt mainly by declines in its underwriting business, which
includes initial public offerings, and lower advisory fees.
Morgan Stanley's total revenue fell 7 percent to $10.29 billion,
while non-interest expenses dropped 4 percent.
The bank said earnings attributable to common shareholders fell
9 percent to $2.34 billion, or $1.39 per share. Excluding items,
the company earned $1.33 per share. https://mgstn.ly/2vaVd4I
Analysts had estimated $1.17 per share, according to IBES data
from Refinitiv.
(Reporting By Aparajita Saxena in Bengaluru; Editing by
Saumyadeb Chakrabarty)
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