Morgan Stanley earnings fell to $US433million after booking $US1.2 billion in legal costs over mortgage lawsuits
MORGAN Stanley's earnings fell in the fourth quarter as it was hit by legal costs related to mortgage-backed securities lawsuits.
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MORGAN Stanley says its earnings fell in the fourth quarter as it was hit by legal costs.
The New York investment bank earned $US433 million ($491 million), or 20 cents a share, in the fourth quarter of 2013. That compared to $US982 million, or US49 cents a share, a year earlier.
Excluding litigation costs and a tax benefit, the bank earned US50 cents a share, beating the US44 cents forecast by Wall Street analysts. The results also exclude accounting adjustments related to the value of the bank's debt.
The fourth quarter included legal expenses of $US1.2 billion related to mortgage-backed securities lawsuits.
Revenue rose 9 per cent to $US8.2 billion from $US7.5 billion, beating analysts' forecasts of $8.02 billion.
Morgan Stanley's stock rose US85 cents, or 2.7 per cent, to $US32.80 in pre-market trading.
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