Morgan Stanley's Mixed Results: Beats Earnings Estimates but Faces Credit Losses and Margin Slips

Morgan Stanley's stock remained flat despite beating Q1 earnings projections, as the bank built up its provision for credit losses to protect against losses in commercial real estate and other business lines. The bank's profit fell 19% due to a scarcity of IPOs, M&A deals, and capital-raising activities. Morgan Stanley added $110 billion in new assets in its wealth-management unit, while investment-banking activity remained "constrained." The bank reduced its exposure to commercial real estate in its portfolio during the past 12 months.