Proactive Investors - Morgan Stanley (NYSE:MS) reported a decline in profits over the second quarter of 2023 due to challenges faced in the global deal-making and trading landscape.
The company's net income of $2.2 billion dropped 13% compared to the same period last year, reaching its lowest level in over three years. However, its revenue of $13.5 billion rose 2% from the previous year.
Despite the profit decline, Morgan Stanley (NYSE:MS)'s performance exceeded market estimates, reporting an earnings per share of $1.24 on revenue of $13.46 billion, comfortably beating analysts' expectations.
However, the bank's trading revenues of $4.26 billion fell slightly below analyst expectations. Both equities and fixed-income trading revenues experienced declines of 22% and over 19% respectively compared to the previous year's figures. Similarly, investment banking revenues remained flat compared to the previous year and decreased from the first quarter.
The company's wealth management business, on the other hand, contributed positively to offset some of the weaknesses. The revenues in the wealth management unit rose by 16% from the previous year to $6.7 billion. However, asset management revenue slipped 2%.
Morgan Stanley shares inched 0.1% higher in premarket trading Tuesday at $86.37.