Oct 14 (Reuters) – Morgan Stanley on Friday reported a 30% drop in third-quarter profit as a global trading slowdown hurt its core investment banking business.
The title fell 3% on Wall Street in pre-market trading.
The bank reported earnings of $2.49 billion, or $1.47 per share, for the quarter ended Sept. 30, up from $3.58 billion, or $1.98 per share, a year earlier .
Investment banking revenue more than halved to $1.23 billion.
Global mergers and acquisitions lost ground for the third consecutive quarter as volumes in the United States fell nearly 63% as the rising cost of debt forced companies to delay major takeovers.
Companies have also delayed IPO plans amid gloom from the conflict in Ukraine and rapidly rising borrowing costs.
The investment bank also increased its provision for credit losses to $35 million, from $24 million a year earlier, amid growing fears of a recession in the United States.
Morgan Stanley’s net revenue this quarter fell 12% to $13 billion.
Rival banks JPMorgan Chase and Well Fargo also reported lower quarterly profit on Friday. (Report Manya Saini in Bangalore and Carolina Mandl in New York, French version Dina Kartit, editing by Kate Entringer)
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