Morgan Stanley's profit fell 60% in the second quarter, below analysts' estimates. The Investment Bank saw revenues fall more than 10% due to a weak performance in its institutional securities business.
The Bank reported profits of $591 million, compared with $1,19 billion in the same period last year. Earnings per share fell to 29 cents from 38 in the second quarter of 2011, a figure that included charges of $1,02 per share derived from the conversion of preferred stock held by Mitsubishi UFJ Financial Group. Excluding extraordinary items, Morgan Stanley is back in the black, going from a red of 558 million to a profit of 564 million.
Revenue fell 24% to $6,95 billion (-26% to $6,6 billion including changes in debt valuation). Analysts were expecting profits of 43 cents a share, on a turnover of 7,7 billion.
