TALE OF TWO BANK UNITS: Morgan Stanley's first-quarter earnings and revenue slipped. Though they beat analysts' expectations, investors were disappointed and drove down the bank's stock price. Profit and revenue fell in the investment bank but jumped in wealth management. The bank is rejiggering its strategy to focus more on the latter.
THE INVESTMENT BANK: Brought in less revenue from trading bonds and commodities, and made less money on advising companies on mergers and acquisitions. Revenue from underwriting stock and bond offerings rose.
WEALTH MANAGEMENT: Generated more fees, and clients brought more assets to the bank. The pre-tax profit margin rose to its highest level since Morgan Stanley's wealth management group joined with Citigroup's Smith Barney in 2009.