Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Wall Street gets Fed reality check
Wall Street gets Fed reality check - 01:51
Reuters Today: Spanish yields seen rising at auction
Reuters Today: Spanish yields seen rising at auction - 06:21
Surprise services boost points to UK recovery
Surprise services boost points to UK recovery - 02:54
Breakingviews: Do as I say, not as I do – German wages
Breakingviews: Do as I say, not as I do – German wages - 05:04
Market Pulse: Spain under fire as investors shun bond sale
Market Pulse: Spain under fire as investors shun bond sale - 03:28
Myanmar's Kyat begins managed float
Myanmar's Kyat begins managed float - 01:59
ASEAN: territorial code of conduct draft by year-end
ASEAN: territorial code of conduct draft by year-end - 01:48
U.S. Morning Call: Stock futures down, JPMorgan to be fined
U.S. Morning Call: Stock futures down, JPMorgan to be fined - 02:08
EMEA Day Ahead:: Thursday
EMEA Day Ahead:: Thursday - 03:13
3XSQ: Customer funds in question; royal return
3XSQ: Customer funds in question; royal return - 05:44
Still cashing in? Hirst retrospective
Still cashing in? Hirst retrospective - 02:32
World's biggest car delivery center
World's biggest car delivery center - 02:41

Profit drops at Morgan Stanley

Wednesday, July 20, 2016 - 01:13

Quarterly revenue at the investment bank fell in each of its main businesses. But the results easily beat Wall Street's lowered targets. Fred Katayama reports.

▲ Hide Transcript

▶ View Transcript

Morgan Stanley's quarterly profit fell 12 percent despite cutting costs. Revenue declined in each of its four main business units. Unlike its peers whose trading revenue got a huge lift from Britain's vote to quit the European Union, Morgan Stanley's trading fell, although its gain in fixed income revenue beat some analysts' forecasts. The investment bank has reorganized its fixed income business this year by cutting about a fourth of its staff. Investment banking revenue plummeted, yanked lower by a 40 percent drop in underwriting of stocks and bonds. The company sharply slashed expenses, lowering pay and benefits. But its return on equity fell, falling far shy of CEO James Gorman's goal for next year. Still, despite a pullback in Morgan Stanley's earnings and revenue, both easily beat Wall Street's lowered forecasts. Oppenheimer analyst Chris Kotowski called it a "solid beat," saying it was "... powered primarily by a strong performance in fixed income, currencies and commodities trading .. .with an assist from a good performance on expenses." Morgan Stanley's shares, down 11 percent this year, rose in early trading on the earnings beat.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Close

Profit drops at Morgan Stanley

Wednesday, July 20, 2016 - 01:13