Morgan Stanley says income from continuing operations in the second quarter ended May 31, 2008, was $1 billion compared with $2.4 billion in the second quarter of last year. Net revenues were $6.5 billion, 38 percent below last year's second quarter. Non-interest expenses of $5.1 billion, including severance expense of some $245 million related to staff reductions, decreased 28 percent from a year ago.
Global wealth-management group's pre-tax income for the second quarter was $989 million, compared with $264 million in the second quarter of last year. The quarter's pre-tax margin was 41 percent, compared with 16 percent in last year's second quarter.
Excluding a one-time item, net revenues for wealth management — led by James Gorman — were $1.7 billion, up 4 percent from a year ago.
Total client assets were $739 billion, an $11 billion increase from last year's second quarter. Client assets in fee-based accounts were $194 billion, an 8 percent decrease from a year ago; they represent 26 percent of total client assets.
