Morgan Stanley reports sharp drop in revenues

  • Morgan Stanley has announced a sharp drop in its revenues in the three months to the end of June on the back of poor results from its investment banking division.

    Shares in the bank plummeted more than 3 percent in early trading as it reported a 24 percent decrease in revenues to $6.95 billion, with a 37 percent fall from investment banking.

    However, the group did report profits of $563 million compared with a $558 million loss last year caused by a one-off $1.7 billion charge.

    Chief executive James Gorman has been cutting costs and trying to reduce the firm's dependence on investment banking, which has been hit hard by the global slowdown.

    Last month, Morgan Stanley was downgraded two notches from A2 to Baa1 by ratings agency Moody's.