NEW YORK: Morgan Stanley reported a higher-than-expected profit, bolstered by strength in bond trading and M&A advisory, but executives were careful not to sound too optimistic about the rest of the year.
Like other big banks, Morgan Stanley had to navigate falling interest rates, volatile markets and recession signals during the third quarter, and fared relatively well. Its overall profit rose 3 per cent, topping Wall Street expectations by a healthy margin.
However, the factors that created such a difficult operating environment during the quarter have not gone away, Chief Executive James Gorman and Chief Financial Officer Jonathan Pruzan said on a call to discuss earnings. During the quarter, Morgan Stanley swallowed heavy losses from stakes in companies that went public. Investment revenue plummeted to $33 million from $340 million. — Reuters