Morgan Stanley reported third quarter earnings of 42 cents per share, which was some 20 cents shy of expectations and was down from 65 cents in the comparative three months of 2014. Revenue amounted to US$7.33bn for the quarter.
The market’s expectation was for earnings per share of about 62 cents on US$8.54bn of revenue.
James Gorman, Morgan Stanley chief executive, blamed “volatility in global markets” and “a difficult environment” which had impacted on the investment bank’s fixed income unit and operations in Asian merchant banking operations.
“Our business model provides a steady foundation for the firm as we navigate these challenging markets and focus intensely on addressing areas of underperformance,” he added in a statement.