Morgan Stanley (NYSE:MS) has reported net revenues of US$12.99 billion for the third quarter ended September 30, 2022, compared with $14.8 billion a year ago, and less than the $13.3 billion projected by analysts.
Net income came in at US$1.47 a share, below the $1.49 expected by analysts, and lower than the $1.98 per share reported in the same period a year ago.
The New York-based bank said a drop in investment banking and in investment management revenues caused the decrease.
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CEO James P Gorman said the bank’s performance was resilient and balanced in “an uncertain and difficult environment” as it delivered a 15% return on tangible common equity.
“Wealth management added an additional $65 billion in net new assets and produced a pre-tax margin of 28%, excluding integration-related expenses, demonstrating scale and stability despite declining asset values,” Gorman said in a statement.
“While investment banking and investment management were impacted by the market environment, fixed income and equity navigated challenging markets well. We continue to maintain our strong capital position while repurchasing $2.6 billion of shares and distributing a healthy dividend,” Gorman added.
Investment banking revenues were down 55% from a year ago to $1.28 billion due to lower levels of completed merger and acquisition transactions, the bank reported.
Institutional securities registered net revenues of $5.8 billion, reflecting a strong performance in fixed income and solid results in equity, while the uncertain macroeconomic environment continued to drive limited activity in investment banking, it added. Investment management delivered net revenues of $1.2 billion compared with $1.5 billion a year ago.
Morgan Stanley shares slid 2.4% in pre-market trading, and have dropped 19% this year.
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