Morgan Stanley loses 558 million dollars in second quarter

Jul 21, 2011, 13:25 GMT

New York - US brokerage concern Morgan Stanley reported Thursday a loss of 558 million dollars in the second quarter of 2011, less than what analysts had been projecting, reflecting the costs of converting Mitsubishi UFJ's holding.

The figure compares with a profit of almost 1.58 billion dollars in the same quarter last year, and 736 million dollars in the first quarter.

Morgan Stanley took a 1.7-billion-dollar charge in converting Mitsubish UFJ Financial Group Inc.'s preferred stakeholding, erasing the company's earnings in the quarter.

Net income for the quarter was 1.19 billion dollars, compared with 1.96 billion dollars in the previous-year period, the company statement showed.

The financial news wire Bloomberg noted that the second-quarter loss, at 38 cents per share, was below the average prediction of 61 cents in a survey of 18 analysts.

Net revenues in the second quarter amounted to almost 9.3 billion dollars, surging 17 per cent from the 7.96 billion dollars a year earlier. The revenues were also 22 per cent stronger than the 7.64 billion dollar figure in the first quarter this year.

'While global markets remained challenging this quarter, the Firm delivered higher year-over-year revenues across our three major business segments,' commented James P Gorman, President and Chief Executive Officer, referring to institutional securities, global wealth management and asset management operations.