Morgan Stanley headquarters in New York (Photo: Bloomberg)
Morgan Stanley's net income fell 30% in the first quarter to $1.7 billion from a year ago, while its earnings dropped 27% to $1.01 per share due to "the impact of the [coronavirus] pandemic on each of our businesses," it said Thursday. Revenue declined 8% to about $9.5 billion.
"The decline of asset prices, reduction in interest rates, widening of credit spreads, lending and counterparty credit deterioration, market volatility and reduced investment banking activity had the most immediate negative impacts on our first quarter performance," the bank explained.
The wealth unit's revenue also fell by 8% from a year ago to $4.04 billion. Its net income weakened 6% to $864 million, but it had a pretax margin of 26%in Q1'20, ahead of rival Bank of America Merrill Lynch's 23%).
Chief Financial Officer Jonathan Pruzan said the firm is upbeat about the unit overall. "Our growth strategy is working, as clients are seeking professional advice during turbulent times, particularly with increased complexity," he said on a call with equity analysts.
