Morgan Stanley registered net revenues of $14.8bn in the first quarter of 2022, a drop of 11% compared with $15.7bn in the same quarter of 2021.

The investment bank’s net income in the quarter totalled $3.7bn or $2.02 per diluted share, as against $4.1bn or $2.19 per diluted share in the year-ago quarter.

Pre-tax income stood at $4.5bn compared with $5.34bn in the previous year.

Net revenues at Morgan Stanley’s wealth management arm slightly dropped to $5.93bn from $5.95bn in Q1 2021.

The unit delivered a pre-tax margin of 26.5% or 27.8% excluding integration-related expenses. The business added net new assets of $142bn.

Investment management posted net quarterly revenues of $1.3m while pre-tax income stood at $228m.

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In the Institutional Securities unit, which includes investment banking, net revenues dropped 10.73% to $7.65bn from $8.57bn.

The firm’s provision for credit losses rose to $57m from the previous year driven by portfolio growth and the prior year quarter “reflecting a release in the allowance for credit losses”.

Morgan Stanley chairman and CEO James Gorman said: “The Firm delivered a strong ROTCE of 20% in the face of market volatility and economic uncertainty, demonstrating the resilience of our global diversified business.

“Institutional Securities navigated volatility on behalf of clients extraordinarily well, Wealth Management’s margin proved resilient and the business added $142bn net new assets in the quarter, and Investment Management benefited from its diversification. The quarter’s results affirm our sustainable business model is well positioned to drive growth over the long term.”

In the final quarter of 2021, Morgan Stanley posted strong results, benefitting from wealth and investment management  performance.