Morgan Stanley Beats Estimates With Wealth Business Growth, but Shares Fall
Morgan Stanley’s profit beat expectations as wealth management revenue climbed in the first quarter, offsetting slumps in investment banking and trading.
The bank earned $1.70 per share, beating analysts’ average estimate of $1.62 per share, according to Refinitiv data. But its shares fell 1 percent to $88.92 in early trading on Wednesday as investment banking revenue fell 24 percent to $1.25 billion and trading revenue also slid.
The Wall Street powerhouse set aside $234 million in the quarter to cover bad loans, rising from $57 million a year ago, as it braced for a recession and weakness in the commercial real estate market. The provisions were linked to a handful of loans….