Morgan Stanley on Tuesday reported a 25 per cent fall in second-quarter profits, which was largely due to a giant charge against its aircraft leasing business.
In the three months ending in May, net income dropped to $599m, or 55 cents per share, from $797m, or 72 cents per share, in the year-ago-period at the Wall Street bank.
The bank wrote off $287m for its aircraft leasing business, which was battered by the fallout from the airline industry. The pre-tax charge reduced its net income by $172m.
"While there have been some encouraging signs recently, the business environment has continued to be very difficult," Phil Purcell, Morgan Stanley's chief executive said.
The performance of Morgan's fixed income business padded the group's earnings, he said. While money from underwriting and mergers and acquisitions trickled in this quarter, revenue from sales and trading in the fixed-income group jumped 48 per cent from last year to $1.3bn.
The bank's net revenues fell 8 per cent from the first quarter to $5bn.
In the three months ending in May, net income dropped to $599m, or 55 cents per share, from $797m, or 72 cents per share, in the year-ago-period at the Wall Street bank.
The bank wrote off $287m for its aircraft leasing business, which was battered by the fallout from the airline industry. The pre-tax charge reduced its net income by $172m.
"While there have been some encouraging signs recently, the business environment has continued to be very difficult," Phil Purcell, Morgan Stanley's chief executive said.
The performance of Morgan's fixed income business padded the group's earnings, he said. While money from underwriting and mergers and acquisitions trickled in this quarter, revenue from sales and trading in the fixed-income group jumped 48 per cent from last year to $1.3bn.
The bank's net revenues fell 8 per cent from the first quarter to $5bn.
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