Morgan Stanley delivered quarterly earnings that fell well short of analysts' expectations on Monday, as investors fled the bond, currency and commodity markets amid uncertainty about the timing of a U.S. interest rate hike and concerns about China's cooling economy.
Shares of Morgan Stanley slumped more than 4 percent in premarket trading following the report. (Get the latest quote here.)
The investment banking giant posted third-quarter adjusted earnings of 42 cents per share, down from 65 cents a share in the year-earlier period.
Revenue fell to $7.33 billion from $8.54 billion a year ago. Trading revenue fell about 17 percent to $2.03 billion.
Wall Street had expected Morgan Stanley to deliver quarterly earnings per share of 62 cents on $8.54 billion in revenue, according to consensus estimates from Thomson Reuters.
"The volatility in global markets in the third-quarter led to a difficult environment, impacting in particular our fixed income business and our Asia merchant banking business," Chief Executive James Gorman said in a statement.
"The Firm benefited from the stability of the Wealth Management business, our ongoing leadership in Equities and the continued strength of our Investment Banking franchise. Our business model provides a steady foundation for the Firm as we navigate these challenging markets and focus intensely on addressing areas of underperformance."