Morgan Stanley (MS) reported a 14% drop year over year in second-quarter profits on Wednesday. Its results, which beat analysts’ estimates, were $1.43 billion, or $0.75 per share, vs. $1.67 billion, or $0.85 per share, in the year-ago period.
Revenue declined 9% from Q2’15 to $8.9 billion. Results were weaker in its three main business units: Institutional Securities, Wealth Management and Investment Management.
“Our results this quarter reflect solid performance in an improved but still fragile environment,” said CEO James Gorman, in a statement. “In the midst of market uncertainty, we maintained our leadership positions across our core franchises and continued our focus on prudent risk management and judicious expense control.”
Wealth Management had net revenue of $3.8 billion, down 2% from a year before. Its pretax earnings were $859 million, 3% weaker than in Q2’15, while its after-tax earnings were $516 million – a drop of 8% from the prior-year quarter.
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Its pre-tax profit margin was 23%, the same as Q2’15 and up from 21% Q1’16. Gorman has said the unit is expected to produce a pretax margin of 23% to 25% for full-year 2017.