Morgan Stanley reported lower-than-expected quarterly profit today as its fixed income trading fell, hurt by increased volatility at the end of the fourth quarter.
The bank's bond trading results were in line with other Wall Street rivals, which reported declines in revenue of between 15-21%.
Morgan Stanley said its total sales and trading net revenue fell 7% to $2.49 billion, for the quarter ended December 31. Fixed income revenue fell 30% to $564m, while equities revenue was flat.
Net revenue fell 10% to $8.55 billion, falling well short of analysts' average expectation of $9.30 billion, according to IBES data from Refinitiv.
Net income applicable to Morgan Stanley jumped to $1.53 billion, or 80 cents per share, in the fourth quarter ended December 31, from $643m, or 26 cents per share, a year earlier.
Analysts on average were looking for 89 cents per share, according to IBES data from Refinitiv.
On an adjusted basis, the bank earned 73 cents per share, compared with 84 cents per share a year ago.
