US bank Morgan Stanley has posted third quarter results showing income was down by around a third compared to the same period in 2009.
Income was $313million for July to September 2010, compared to $939million in the same period last year. The repatriation of non-US earnings brought in less than originally estimated by the bank, with a write-down on the revenue raised from selling assets in Revel Entertainment Group LLC, a casino company.
Revenues at its investment banking division were $1billion, while sales and trading net revenues were $1.4billion. Negative revenue was recorded in relation to the cost of the institution’s long and short term borrowing.
‘Net revenues in the current quarter included negative revenue of $731million related to Morgan Stanley’s debt-related credit spreads (DVA) compared with negative revenue from DVA of $878million in the prior year’s third quarter,’ a statement said.
James P Gorman, Morgan Stanley president and chief executive said: “Although we continued to make progress across some key businesses this quarter, our results in aggregate clearly do not reflect the true potential of Morgan Stanley’s global client franchise and I am not satisfied with our overall performance.”
Gorman said sales and trading business was ‘muted’ but wealth management and asset management had performed positively.
© Fair Investment Company Ltd