Morgan Stanley, last Bank to report its Q1 earning
Published by Terence Mahier | Source

Morgan Stanley, the last of the big U.S. banks to report quarterly earnings this week, posted Q1 profit that missed analysts’ expectations 🤧

The Bank said that the coronavirus pandemic impacted each of its major businesses, creating turmoil in financial markets and forcing to set aside ~ $400M to cover future potential credit losses 💰

However and as for its peers, the revenue from trading benefited from the sudden surge in volatility which resulted in higher trading activity.
But the bank warned that that boost could fade away as the crisis wears on ⏳

MS was down 2% in pre-market trading - will investor further panic?


Extra Insights

It goes without saying that the Banking landscape has nothing to do with the 2008 crisis. Balance sheets are strong and measures are taken early. These reserves are "just" a security measure, but they do materialize the systemic risk of households and companies defaulting on their loans 🥺

“While it’s too early to predict how this will unfold, Morgan Stanley navigated the quarter well given the conditions, and our results bear testament to the strength of our balanced business model.” declared the under CEO with confidence 💪

Morgan Stanley is the last of the six largest U.S. banks to report results. JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs, and Citigroup all posted sharp declines in profit tied to the coronavirus pandemic...



What Happened on the market eventually?

As usual lately, the market decided to focus on the positive side of things and Morgan Stanley slowly recovered during the day of yesterday 📈
The results of the company were strong enough to convince that the risk of massive loan defaults does not deserve to be "priced" for now.
All banks will open green today amid hope of a treatment for the Coronavirus, as well as the 3 phases plan of Trump to reopen the U.S. economy ASAP.

- Newspill Team 💊
17-Apr 08:06 (Eastern Time)



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