Morgan Profit Falls 14%; Bear Stearns Profit Rises
Morgan Stanley’s profit dropped 14% in the second quarter, hurt by a slump in energy trading. Earnings at Bear Stearns Cos. more than doubled, boosted by profit from its bond business.
Net income at Morgan Stanley fell to $797 million, or 72 cents a share, matching analyst estimates. Bear Stearns’ net income rose to $342.9 million, or $2.59 a share. Excluding a gain from an investment, profit was $203 million, or $1.55 a share, 35 cents better than estimates.
The profit decline at Morgan Stanley suggests a recovery for the securities industry may not come as fast as some analysts predicted.
Net revenue at Morgan Stanley fell 17% to $4.97 billion. Net revenue at Bear Stearns rose 17% to $1.6 billion.
Morgan Stanley shares fell $1.05 to $44.15, and Bear Stearns shares fell 26 cents to $61.69, both on the New York Stock Exchange.
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