Morgan Stanley, like its peers is still feeling the after effects of the financial crisis.  The investment bank posted first-quarter earnings of $736 million or 50 cents a share, down 48 percent from the same period in 2010. It also took a $655 million loss from a Japanese joint venture. 

Morgan Stanley’s chief executive, James Gorman, said he was “disappointed” with the loss in the Japanese unit, but emphasized in a statement that the company “continued to strengthen our client franchise and delivered solid results across many of our businesses.”

A number of its major units, including global wealth management, experienced a rise in net revenue. In fixed income and commodities sales and trading, however, net revenue fell to $1.8 billion from $2.7 billion in the period a year earlier.

The firm’s return on equity, an important measure of profitability, was 6 percent in the quarter compared with 16 percent in the period a year earlier. This number has fallen sharply across the industry in recent years.  [NY Times 4/21/11]