Morgan Stanley Quarterly Profit Drops 30%
April 16 2020 - 7:59AM
Dow Jones News
By Liz Hoffman
Morgan Stanley's profit fell 30% in the first quarter, the last
big U.S. bank to lurch through a period of stress wrought by the
coronavirus.
The Wall Street firm reported a quarterly profit of $1.7
billion, or $1.01 a share, on revenue of $9.49 billion. Both
figures were down from a year ago.
The results fell just shy of projections by stock analysts, who
had revised their estimates downward as the coronavirus pummeled
the markets and the U.S. economy. Analysts polled by FactSet
expected $1.16 a share, or $1.89 billion, of profit on $9.85
billion of revenue.
Morgan Stanley is the smallest of the six major U.S. banks with
few true peers in the bunch, which has left some investors unsure
how it will fare in a coronavirus downturn.
Its Wall Street businesses are roughly the same size as Goldman
Sachs Group Inc.'s, but its giant wealth-management arm tracks more
closely with Bank of America Corp.'s Merrill Lynch unit. It doesn't
have a credit-card arm, where JPMorgan Chase & Co. and
Citigroup Inc. are steeling for a wave of defaults, and is largely
sitting out the government's small-business emergency lending
program.
Morgan Stanley's 61-year-old chief executive, James Gorman,
spent more than a week in March sickened with the coronavirus,
showing the disease's fever and chills though none of its deadly
respiratory symptoms.
The quarter challenged U.S. megabanks in ways unseen since the
financial crisis of 2008. They contended with falling interest
rates and wildly swinging asset prices, sorted through
unprecedented government intervention in the financial markets, and
steeled themselves for a lengthy recession.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
April 16, 2020 07:44 ET (11:44 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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