New York: Morgan Stanley’s first-quarter profit dropped nearly 50%, hurt by a decline in fixed income trading revenue.
The investment bank and brokerage posted net income for shareholders of $736 million, or 50 cents a share, down from $1.41 billion, or 99 cents a share, a year earlier.
Fixed income trading revenue fell across Wall Street after an unusually strong first quarter in 2010. But some banks have experienced more weakness than others. Morgan Stanley’s revenue for its fixed income and commodities sales and trading unit fell by about a third.
At JPMorgan Chase & Co, revenue for fixed income, currencies, and commodities trading fell just 4% in the first quarter.
Morgan Stanley’s overall revenue fell 16% to $7.64 billion.
Morgan Stanley shares were up 3.3% to $26.89 in premarket trade.