Net revenues were $7.6bn for the current quarter compared with $9.1bn a year ago.
Results for the current quarter included a pre-tax loss of $655m (after-tax loss of $425m or $0.26 per diluted share) arising from the firm’s 40% stake in a Japanese securities joint venture (Mitsubishi UFJ Morgan Stanley Securities or MUMSS).
The current quarter also included a net tax benefit of $447m, or $0.30 per diluted share, from the remeasurement of a deferred tax asset and the reversal of a related valuation allowance that are both associated with the sale of Revel Entertainment Group.
Compensation expenses of $4.3bn decreased from $4.4bn a year ago. The firm’s current quarter compensation to net revenue ratio was adversely affected by the aforementioned MUMSS loss, which reduced net revenues by $655m.
This ratio for the current quarter was 57% (or 52% excluding the MUMSS loss) compared with 49% a year ago.
Non-compensation expenses were $2.4bn compared with $2.1bn a year ago.
For the current quarter, net income applicable to Morgan Stanley, including discontinued operations, was $0.50 per diluted share, compared with net income of $0.99 per diluted share in the first quarter of 2010.
