A Slump in Investment Banking and Trading Revenues
Morgan Stanley (MS) witnessed a 9% drop in third-quarter profits compared to a year ago, signaling ongoing challenges on Wall Street in the wake of a prolonged slump.
Lagging Behind Peers
While the decline in profits was milder than the 33% dip at rival Goldman Sachs (GS), Morgan Stanley’s performance placed it near the bottom among major banks. Notably, JPMorgan (JPM), Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) reported profit increases. Morgan Stanley’s investment banking revenues plummeted by 27% year-over-year, marking it as the weakest performer among large Wall Street-focused banks.
Mixed Results in Investment Banking
In contrast, Goldman Sachs, Bank of America, and Citigroup all saw increases in investment banking fees from the previous year. JPMorgan reported a modest decrease of 2.6% during the same period.