Morgan Stanley posts income loss for Q3

21 October 2010

Net income for Morgan Stanley fell by approximately 68 per cent to $313 million during the third quarter of 2010, new figures from the bank have revealed.

According to official statistics, net income dropped from the $936 million posted between July and September 2009.

The net loss for the bank for the period was equivalent to $0.07 per share, which was in part attributed to a $229 million write down and other costs associated with its interest in the hotel and casino operator, Revel Entertainment Group.

James P Gorman, president and chief executive officer, 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."

However, he added: “Although we still have considerable work to do across the firm, Morgan Stanley's client franchise remains well positioned to benefit as the environment stabilizes and investors return to the market."

Further findings from the results showed net revenue for the third quarter was also down to $6.8 billion from $8.5 billion posted a year ago.

By Jim Ottewill

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