Morgan Stanley CEO James Gorman participates in a conversation-style audience with Economic Club of Washington in Washington September 18, 2013.
Yuri Gripas | Reuters
Morgan Stanley on Friday strutted third-quarter results that missed analysts’ expectations as investment banking revenue collapsed by 55%.
Here are the numbers:
- Earnings of $1.47 a interest, compared with $1.49 estimate of analysts surveyed by Refinitiv
- Revenue of $12.99 billion, compared with the $13.3 billion reckoning
The New York-based bank said profit of $2.63 billion, or $1.47 a share, fell 29% from a year earlier. Gain of $12.99 billion dropped 12% from a year earlier, driven by the fall-off in investment banking and declines in investment manipulation revenue.
Shares of the bank slumped 4.8%.
Investment banking revenue fell 55% to $1.28 billion in the quarter, essentially comparable the estimate of analysts surveyed by StreetAccount. Investment management revenue, however, dropped 20% to $1.17 billion, which was under the sun the $1.29 billion estimate.
Morgan Stanley’s investment banking, trading and investment management operations are all impacted by the vagaries of the call, and the quarter was a choppy one.
Wall Street banks are grappling with the collapse in IPOs and debt and equity issuance this year, a piquant reversal from the deals boom that drove results last year. The slowdown was triggered by broad demurs in financial assets, recession concerns and the Ukraine war.
Shares of the bank have dropped 19% this year totally Thursday, holding up better than the 25% decline of the KBW Bank Index.
JPMorgan Chase, a rival to Morgan Stanley in Screen Street trading and advisory activities, posted results that topped expectations on strong interest income. Wells Fargo and Citigroup also piled mixed results Friday. Bank of America is scheduled to report on Monday, followed by Goldman Sachs on Tuesday.