The quarterly profit of Morgan Stanley (NYSE: MS) has fallen more than twice as commercial and investment banking unit of the US bank suffered amid market volatility at the beginning of the year.
The profit of Morgan Stanley, applicable to holders of ordinary shares, fell in the quarter ended March 31, by 54.4 %, to $ 1.06 billion or 55 cents per share, from $ 2.31 billion or $ 1.18 per share of the previous year.
Excluding the change in the accounting order, the bank also received 55 cents per share.
Analysts on average expected a profit of 46 cents per share, according to a survey by Thomson Reuters I/B/E/S. Currently, it is impossible to tell how much the predictions are comparable with the obtained data.
The fall in commodity and oil prices, concerns about China's economy, as well as the uncertainty regarding the timing of raising interest rates in the US, led to the instability of the markets in January and February, scaring traders, investors and companies who planned to withdraw their shares on the stock exchange.
"The first quarter was characterized by difficult market conditions and subdued client activity. Despite this background, our businesses showed consistent results ", - said James P. Gorman, Chairman and Chief Executive Officer.
"While we are seeing some signs of recovery in the market, global uncertainty continue to negatively affect the activity of investors. We continue to focus on the implementation of our priorities, helping clients navigate complex markets, and we prudently control our costs and manage risks ", - he added.
All the major US banks that have published results for the first quarter reported a decline in revenue sales divisions and units of investment banking services.
Goldman Sachs Group Inc (NYSE: GS) - a traditional rival of Morgan Stanley - will present its financial statements on Tuesday.
The market value of the bank since the beginning of the year fell 19%, which is more than many other giants of Wall Street. For comparison, the capitalization of Bank of America (NYSE: BAC) fell 17% this year, Citi - by 13%, JPMorgan - 6%, and US Bancorp (NYSE: USB) dropped 4%.