Morgan Stanley unveils plans to cut $1 billion in costs by 2017

January 19, 2016 10:21 AM

Its trading revenue rose nearly 1% to $1.47 billion as an 11.7% rise in revenue from equity sales and trading more than made up for an 8.2% decline in revenue from fixed income and commodities trading.

Revenue from wealth management slipped 1.4% to $3.75 billion.

As its trading business suffers, the bank has been focusing on its less volatile wealth management unit, which accounted for nearly half of its revenue in 2015.

"I think what we have is a temporary pressure on the core businesses ... We should see some rebound as we go into the first half of 2016," Viking Sparks analyst Marty Mosby said.

Morgan Stanley reported earnings of $753 million, or 39 cents per share, applicable to common shareholders compared with a year-earlier loss.

Excluding items, the bank earned 43 cents per share.

Analysts on average had expected a profit of 33 cents per share and revenue of $7.59 billion, according to Thomson Reuters I/B/E/S.

Rival Goldman Sachs Group Inc is scheduled to report its results on Wednesday.

Morgan Stanley shares were up 1.7% at $26.40. The stock slumped 18% last year, the steepest fall among big U.S. banks.

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