Morgan Stanley profits drop 9% after investment banking slump

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Morgan Stanley has reported a 9 per cent fall in third-quarter profits, as slower growth at the Wall Street bank’s juggernaut wealth management business was compounded by falling revenues in investment banking and trading.

The bank on Wednesday reported net income of $2.4bn for the quarter, down from $2.6bn a year earlier and slightly ahead of analysts’ estimates for $2.3bn, according to data compiled by Bloomberg.

Morgan Stanley’s net revenues for the three months were $13.3bn, up 2 per cent from $13bn a year ago.

“While the market environment remained mixed this quarter, the firm delivered solid results,” chief executive James Gorman said in a statement.