2023-07-18 14:32:04
As in the first quarter, Morgan Stanley suffered from the lack of activity in the mergers and acquisitions sector. (Archives) © KEYSTONE/EPA/ANDREW GOMBERT
Published on 18.07.2023
The American investment bank Morgan Stanley published Tuesday a net profit down 14%, to 2 billion dollars (1.7 billion francs), in the second quarter due to a “difficult” context for certain activities of advice.
“The quarter began with macroeconomic uncertainties and subdued client activity but ended on a more constructive note,” Morgan Stanley chief James Gorman said in a statement.
The establishment finished it “with a solid capital position”, he supported.
“We remain confident in our ability to grow in different market environments, while maintaining a strong capital position,” he added.
The bank’s turnover increased by 2% over one year to 13.46 billion dollars, marked by a record in the wealth management branch where the net amount of new assets deposited by customers reached 90 billion dollars. dollars.
But, like the first quarter, Morgan Stanley suffered from the lack of activity in the mergers and acquisitions sector.
The investments branch, which essentially includes asset management, also lost ground in the wake of the decline in asset values compared to the same period in 2022 and the “cumulative effect of withdrawals”.
In this context, Morgan Stanley bought back $1 billion in treasury shares over the quarter, or just over a third of the envelope used a year earlier. A new buyback program was authorized for an amount of 20 billion dollars, with no expiry date.
The second quarter was also marked by an exceptional charge of $308 million for layoffs and integration expenses of $99 million.
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