Morgan Stanley (NYSE: MS) reported first-quarter 2016 results before markets opened Monday. The big bank reported diluted earnings per share (EPS) of $0.55 on revenue of $7.79 billion. In the same period a year ago, the bank reported EPS of $1.18 on revenue on $9.9 billion in revenue. Third-quarter results also compare to the consensus estimates for adjusted EPS of $0.46 on revenue of $7.87 billion.

Last year’s EPS total included $0.29 per share in a tax benefit and a $0.04 per share benefit from the debt valuation adjustment (DVA). Excluding these items Morgan Stanley’s first-quarter EPS last year totaled $0.85.

Morgan Stanley changed its accounting practices for DVA beginning in the first quarter. DVA is now accounted for as other comprehensive income instead of net revenues.

Equity sales and trading net revenues of $2.1 billion were down from $2.3 billion a year ago, and fixed income and commodities sales and trading net revenues fell from $1.9 billion to $873 million, which the bank attributed to low energy prices and the disposition of its oil merchanting business in the fourth quarter of 2015.

Revenue rose from $471 million a year ago to $591 million in the bank’s advisory business, reflecting higher completed M&A activity. Underwriting revenues dipped from $307 million to $160 million due to significantly lower volume, and fixed income underwriting fees dropped from $395 million to $239 million as a result of lower bond fees.

The bank’s annualized return on average common equity from continuing operations was 6.2% in the current quarter.

Morgan Stanley’s Basel III common equity tier 1 ratio at the end of March was 15.7% and its tier 1 risk-based capital ratio was about 17.4%. The bank’s tangible book value per common share at the end of the quarter was $30.44, based on approximately 1.9 billion shares outstanding.

The bank repurchased approximately $625 million of its common stock, or approximately 25 million shares, in the first quarter.

The bank did not provide guidance in its earnings release. The consensus estimate for second-quarter EPS is $0.66 on revenues of $8.58 billion. For the full year, the consensus calls for EPS of $2.30 on revenues of $33.3 billion.

The bank’s CEO, James Gorman, said:

The first quarter was characterized by challenging market conditions and muted client activity. Against that backdrop, our businesses delivered stable results. While we see some signs of market recovery, global uncertainties continue to weigh on investor activity. We remain focused on executing against our priorities, helping clients navigate difficult markets while controlling our expenses and managing risk prudently.

Shares traded up about 2% in the premarket Monday morning to $26.25. The current 52-week range is $21.16 to $41.04. Thomson Reuters had a consensus analyst price target of $32.39 before the results were announced.

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