Morgan Stanley's profit falls short, but trading beats estimates on market volatility

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Morgan Stanley CEO James Gorman, who was diagnosed with coronavirus himself, said yesterday he’s not expecting a V-shaped recovery. “This is not going to turn on a dime.”

on Thursday posted first-quarter profit that missed analysts' expectations and warned that a sole bright spot for the industry, robust trading results, may prove to be fleeting.earnings dropped 30% to $1.7 billion, or $1.01 a share, compared with the $1.14 estimate of analysts surveyed by Refinitiv. Companywide revenue of $9.49 billion was also below the $9.73 billion estimate. Morgan Stanley shares dipped less than 1%.

"Though we are unable to estimate the extent of the impact, an extended period of depressed economic activity necessitated to combating the disease, and the severity and duration of the related global economic crisis, will adversely impact our future operating results, and the attainment of our financial targets," the bank warned.

As with rival banks, trading results were strong: Revenue jumped 30% from a year earlier, and fixed income desks generated $2.2 billion in revenue, half a billion dollars more than expected. Equities desks also outperformed, making $2.42 billion in revenue, almost $200 million more than expected. But results in the institutional securities division, which houses trading and advisory businesses, were damaged by a $610 million mark-to-market loss on loans held for sale and a $388 million provision for credit losses, potentially tied to the energy sector., Morgan Stanley has emphasized its wealth management division as a steadier business than its trading operations.

 

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Economy starts to move It is important to prepare I know United States is strong

Didn’t MorganStanley get the subprime bet wrong and drive the company to bankruptcy only to be saved by taxpayer bailouts? Why do they have street cred?

In reality nobody knows, so fucking stop spreading news of the outcome of a toss of a coin! Covidiots!

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