Morgan Stanley (NYSE:MS) shares are down nearly 1% in pre-open Thursday after the bank reported worse-than-expected second quarter results.
Morgan Stanley reported revenue of $13.13 billion to slightly miss on the expected $13.33 billion. The company’s Institutional Investment Banking unit generated $1.07 billion to miss on the $1.27 billion consensus.
Adjusted EPS was reported at $1.44 per share, again lower than the $1.57 expected. The bank also reported non-interest expenses of $9.71 billion vs consensus of $9.53 billion.
Morgan Stanley said that “strong results in Equity and Fixed Income helped partially counter weaker investment banking activity.”
“Non-compensation expenses increased from a year ago primarily driven by higher litigation costs, including $200 million related to a specific regulatory matter concerning the use of unapproved personal devices and the Firm’s record-keeping requirements, and higher volume-related expenses,” the bank said in a press release.