Wall Street investment bank Morgan Stanley reported a fall in adjusted second-quarter profit on Wednesday as cost-cutting failed to make up for a decline in revenue from trading and investment banking.
The bank said its net income attributable to common shareholders was $1.43 billion, or 75 cents per share, in the quarter ended June 30.
"Our results this quarter reflect solid performance in an improved but still fragile environment," said CEO James Gorman said in an earnings statement. "In the midst of market uncertainty, we maintained our leadership positions across our core franchises and continued our focus on prudent risk management and judicious expense control."
Morgan Stanley reported an adjusted profit of $1.69 billion, or 79 cents per share, a year earlier.
Analysts on average had expected earnings of 59 cents per share in the latest quarter, according to Reuters. It was not immediately clear if the estimate was exactly comparable.
The earnings for the latest quarter take into account a rule change that no longer requires Morgan Stanley to reflect changes in the value of its own debt in its earnings.