Tumbling technology stocks and the US terror attacks have dented full-year results at investment bank Morgan Stanley.
Full-year profits fell by 34 per cent to £2.5 billion.
Stock market volatility and the war on terrorism resulted in many clients delaying share sales and big deals.
Morgan Stanley's advisory revenues were down by 44 per cent in the fourth quarter, to £220 million. Underwriting revenues fell by 12 per cent to £330.7 million.
Chairman Mr Philip J Purcell and president Mr Robert G Scott said in a statement: "This has been a difficult year, with the economic downturn and the extraordinary events of September 11. While the economic environment remains uncertain, we continue to benefit from the diversity of our businesses",
Morgan Stanley says it reduced compensation costs by 40 per cent during the period, as it cut back on performance-related bonuses.
The US bank's Discover credit card, which it acquired after its merger with Dean Witter, reported a 31 per cent rise in net income to £133 million.
PA