NEW YORK, July 22 — Morgan Stanley reported its third consecutive quarterly loss today as earnings were saddled with a charge related to repaying a government bailout.
The New York-based firm swung to a loss applicable to common shareholders of US$1.26 billion (RM4.48 billion), or US$1.10 per share, in the second quarter, compared with a profit of US$1.1 billion, or US$1.02 a share, a year earlier.
Morgan Stanley shares were down 5 per cent in pre-market trading.
Net Revenue fell 24 per cent to US$2.9 billion.
During the quarter, Morgan Stanley repaid US$10 billion from the government’s Troubled Asset Relief Program, incurring a one-time charge of US$850 million.
It was a busy quarter for Morgan Stanley, which not only repaid TARP but also completed a joint venture with Citigroup Inc, forming the Morgan Stanley Smith Barney brokerage joint venture.
As Morgan Stanley scaled back on risk after the collapse of the financial sector last fall, it found itself posting lacklustre earnings compared with long time rival Goldman Sachs, which last week reported net revenue of US$3.4 billion.
Morgan Stanley shares closed yesterday at US$27.56 on the New York Stock Exchange. The shares are up from a low of US$6.71 last October but are down 40 per cent from a high of US$46.58 in 2008. — Reuters
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