Morgan Stanley’s Q1 Profits Exceed Expectations

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Morgan Stanley’s first-quarter profit exceeded expectations, as the wealth management division’s increased revenue outweighed the drops in investment banking and trading units.

Despite this, the bank’s shares dropped 3% to $86.81 in premarket trading on Wednesday, due to a 24% decrease in investment banking revenue and provisions of $234 million set aside to cover bad loans.

This was a rise from the prior year’s $57 million as the organization anticipates a decline in commercial real estate and its customers’ ability to pay off loans as costs of borrowing and recession concerns rise.

Revenue in the wealth management division soared 11%, resulting in $110 billion in net new assets, with around $20 billion of that stemming from regional banks in reaction to the March banking crisis.

Chief Financial Officer Sharon Yeshaya stated:

“In times of difficulty in the broader economic environment, we remain a preferred destination for our clients and their assets.”

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