Morgan Stanley Dips on Worse-than-expected Investment Banking Revenue and Higher Expenses

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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.

Earlier today, JPMorgan (NYSE:JPM) also delivered disappointing results when compared to market expectations.