Morgan Stanley on Friday posted third-quarter outcomes that missed analysts’ expectations as funding banking income collapsed by 55%.
Listed below are the numbers:
- Earnings of $1.47 a share, in contrast with $1.49 estimate of analysts surveyed by Refinitiv
- Income of $12.99 billion, in contrast with the $13.3 billion estimate
The New York-based financial institution mentioned revenue of $2.63 billion, or $1.47 a share, fell 29% from a 12 months earlier. Income of $12.99 billion dropped 12% from a 12 months earlier, pushed by the fall-off in funding banking and declines in funding administration income.
Shares of the financial institution slumped 2.8% in premarket buying and selling.
Funding banking income fell 55% to $1.28 billion within the quarter, primarily matching the estimate of analysts surveyed by StreetAccount. Funding administration income, nonetheless, dropped 20% to $1.17 billion, which was under the $1.29 billion estimate.
Morgan Stanley’s funding banking, buying and selling and funding administration operations are all impacted by the vagaries of the market, and the quarter was a uneven one.
Wall Road banks are grappling with the collapse in IPOs and debt and fairness issuance this 12 months, a pointy reversal from the offers increase that drove outcomes final 12 months. The slowdown was triggered by broad declines in monetary belongings, recession considerations and the Ukraine battle.
Shares of the financial institution have dropped 19% this 12 months via Thursday, holding up higher than the 25% decline of the KBW Financial institution Index.
JPMorgan Chase, a rival to Morgan Stanley in Wall Road buying and selling and advisory actions, posted outcomes that topped expectations on robust curiosity earnings.
Wells Fargo and Citigroup are additionally scheduled to report outcomes Friday, adopted by Financial institution of America on Monday and Goldman Sachs on Tuesday.
This story is creating. Please examine again for updates.
