Morgan Stanley is a multinational corporation headquartered in the United States. It deals with investment banking and financial services. The company was founded in New York City but now has offices in more than 42 countries around the world.
On Thursday, the company released its first quarterly earnings report. It came as a shock to some experts, as they never expected that things would be so grim. Analysts consider this as an end to the winning streak of Wall Street.
The bank’s profits went down to a shocking 30%, and now they’re lying at $1.7 billion.
Almost every company has been affected by the coronavirus pandemic. The lockdown resulted in reduced profits and several companies went bankrupt. Morgan Stanley is also one of several firms that have been affected by the pandemic. The company thinks that the pandemic is the reason behind the decline in earnings. The lockdown has affected impacted the stock market and the valuation of loans and assets.
In other remarks, the officials said that the length of the pandemic has not yet been determined. The condition can get better but there’s also a possibility that it will become worse. With this degree of uncertainty, the bank will not be able to achieve its necessary goals. This will result in the bank dropping back even more.
James Gorman is the Chief Executive Officer of Morgan Stanley. He emphasized that the wealth management division was not trading, which is a strong unit of the company, and contributes greatly to overall earnings. Even though Morgan Stanley has done the highest trading on Wall Street, keeping the upper hand with the rivals and their competitors.
Gorman claimed in a statement that though they don’t understand the situation fully he is hopeful that the bank will soon be posting gains.