Morgan Stanley posts 48% fall in Q1 profit

| April 21, 2011 | 0 Comments
Morgan Stanley posts 48% fall in Q1 profit

US banking giant Morgan Stanley has today announced first quarter profit fell 48% on an annual basis – primarily due to a $655 million pre-tax loss from its joint venture with Mitsubishi UFJ Financial Group.

However, the fall was much less than analysts had forecast and shares rose 3.5% in early trading as a result.

Net income was down 50% to $736 million or $0.50 per share from $1.41 billion or $0.99 per share in the same three months a year earlier.

The figures come shortly after Goldman Sachs, which is the fifth largest US bank, reported first quarter profits were 21% lower compared with a year ago.

The banking giant said net income dropped to $2.74 billion (£1.7 billion) from $3.46 billion a year earlier. However, these results were also better than analysts expected.

Bank of New York Mellon said net profits came in at $625 million – a rise of 12% on a year earlier. However, the results were lower than analysts expected.

Earlier this week, Citigroup announced first quarter net earnings fell to $3 billion (£1.8 billion), down 32% compared with the same period a year ago.

According to the bank, the drop was attributed to a fall in revenues – which were 22% lower, at $19.7 billion, with the firm’s investment bank hardest hit.

Meanwhile, Bank of America posted a 38% decline in profits for the first quarter, while JP Morgan revealed better than expected results last week after its first quarter profits were boosted by a strong performance in its credit card operation.

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