Morgan Stanley’s profit fell 14% to $2.5 billion in the second quarter from a year earlier.
- Revenue from investment banking was flat at $1.16 billion.
- Trading revenues slid as volatility declined, with fixed income sinking 31% while equities fell 14%.
- CEO James Gorman cited a “challenging market environment” for the subdued results.
- Excluding one-time items, Morgan Stanley earned $1.44 a share on revenue of $13.46 billion.
- Morgan Stanley’s earnings were eroded by $300 million in severance costs after laying off thousands of employees.
- The bank’s wealth management unit reported record net revenue of $6.7 billion, up 16% from a year earlier. It gained $90 billion in new assets.
- Revenue from Morgan Stanley’s investment management unit slipped 2%.