As increased income from its wealth management division offset declining revenue from its investment banking and trading units, Morgan Stanley’s first-quarter profit exceeded expectations.<\/p>\n\n\n\n
However, in premarket trade, shares decreased by more than 2%.<\/p>\n\n\n\n
While wealth management witnessed an 11% increase in revenue and brought in $110 billion in net new assets, investment banking saw a 24% decline in revenue to $1.25 billion.<\/p>\n\n\n\n
Investment banks on Wall Street have been worst hit by a decline in mergers and acquisitions as investors shied away from riskier bets in the face of erratic markets and quickly rising interest rates.<\/p>\n\n\n\n
Initial public offerings have also virtually stopped due to the unrest as startups delay their market debuts until investor sentiment improves.\\<\/p>\n\n\n\n
The downswing in investment banking activity, which forms the core of the bank’s business, dragged its total revenue down nearly 2% to $14.5 billion in the quarter.<\/p>\n\n\n\n
“The investments we have made in our Wealth Management business continue to bear fruit,” Chief Executive James Gorman said in a statement.<\/p>\n\n\n\n
Results from\u00a0Morgan Stanley\u00a0 round out a choppy reporting season for Wall Street’s biggest banks as the collapse of two mid-sized lenders in March sent shockwaves across the world and further fueled recession worries.<\/p>\n\n\n\n
The bank’s closest rival\u00a0Goldman Sachs Group\u00a0Inc also reported a slump in its investment banking unit as dealmaking and bond trading slumped and it lost money on the sale of some assets in its consumer business.<\/p>\n\n\n\n
Morgan Stanley set aside $234 million in the quarter compared with $57 million a year ago, bracing for a deterioration in commercial real estate and customers potentially falling behind on loan payments amid rising costs of borrowing and recession worries.<\/p>\n\n\n\n
The bank earned $1.70 per share, beating analysts’ average estimate of $1.62 per share, according to Refinitiv data. <\/p>\n","protected":false},"excerpt":{"rendered":"
As increased income from its wealth management division offset declining revenue from its investment banking and trading units, Morgan Stanley’s first-quarter profit exceeded expectations. However, in premarket trade, shares decreased by more than 2%. While wealth management witnessed an 11% increase in revenue and brought in $110 billion in net new assets, investment banking saw …<\/p>\n","protected":false},"author":9,"featured_media":33778,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[40,36],"tags":[6904,8144,7331,7323],"class_list":["post-83046","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-cryptocurrencies","category-market-updates","tag-bitcoin","tag-grayscale-bitcoin-trust","tag-morgan-stanley","tag-sec"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/83046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=83046"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/83046\/revisions"}],"predecessor-version":[{"id":83047,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/83046\/revisions\/83047"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/33778"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=83046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=83046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=83046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}