Morgan Stanley Q2 Results: Profit drops 18% as deal drought persists

economictimes.indiatimes.com:

quarter as Wall Street's deal-making drought stunted revenue from investment banking. Revenue from investment banking stood at $1.16 billion, in line with last year as Dealogic data showed global M&A activity fell 36% compared to a year ago.

Still, its climb from the first quarter has sparked hopes of a nascent recovery. CEO James Gorman cited a «challenging market environment,» in the quarter, which «started with macroeconomic uncertainties and subdued client activity, but ended with a more constructive tone.» Morgan Stanley co-president Andy Saperstein had said in May that sales and trading «results will be notably down year over year versus a strong second quarter last year», while «investment banking is also very challenged».

The bank's revenue from asset management slipped 2%. The bank has set a target to increase assets under management to $10 trillion, it said in May, adding it was open to acquisitions.

Morgan Stanley's revenue climbed 2% to $13.46 billion while expenses rose 8% to $10.48 billion. Profit applicable to common shareholders fell to $2.05 billion, or $1.24 per diluted share, the bank said on Tuesday.