Morgan Stanley (NYSE:MS) stock rose 0.45% (As on Apr 15, 7:56:42 AM UTC-4, Source: Google Finance) after the company reported a profit drop of 11% from the last year’s profit. This smaller-than-expected profit drop is a reflection of declining corporate deal-making and a deceitful bounce for current markets. Institutional Securities reported net revenues for the current quarter of $7.7 billion compared with $8.6 billion a year ago. Pre-tax income was $2.8 billion compared with $3.4 billion a year ago. Investment Banking revenues down 37% from a year ago. The advisory revenues nearly doubled from a year ago driven by higher levels of completed M&A transactions. Equity underwriting revenues significantly decreased from a year ago on lower issuances in line with market volumes in an uncertain market environment. Fixed income underwriting revenues decreased from a year ago as macroeconomic conditions contributed to lower bond issuances. Equity net revenues were up 10% from a year ago. Wealth Management reported net revenues of $5.9 billion and pre-tax income of $1.6 billion10 in the current quarter, in line with a year ago, resulting in a reported pre-tax margin of 26.5% or 27.8% excluding the impact of integration related expenses. Asset management revenues increased 14% reflecting higher asset levels driven by positive fee-based flows and market appreciation from a year ago. Transactional revenues decreased 20% excluding the impact of mark-to-market losses on investments associated with certain employee deferred compensation plans. Results reflect a decrease in client activity from significantly elevated levels a year ago.

Moreover, Investment Management reported net revenues of $1.3 billion and pre-tax income was $228 million compared with $370 million a year ago. The comparisons of current year results to prior periods were impacted by the acquisition of Eaton Vance completed on March 1, 2021.

MS in the first quarter of FY 22 has reported the adjusted earnings per share of $2.02, beating the analysts’ estimates for the adjusted earnings per share of $1.68, according to Refinitiv data. The company had reported 6 percent fall in the adjusted revenue to $14.8 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue of $14.27 billion.

Additionally, the company repurchased $2.9 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program. The company has declared a $0.70 quarterly dividend per share, payable on May 13, 2022 to common shareholders of record on April 29, 2022.