James P. Gorman, chairman & CEO of Morgan Stanley, says the worst is behind us.Aaron Bernstein/Reuters
Morgan Stanley chief executive officer James Gorman said on Tuesday the bank expects to set aside a smaller amount of money for potential loan losses in the current quarter, compared with the first quarter.
“The worst is behind us,” Gorman said regarding the bank’s reserve build, while speaking at Morgan Stanley’s annual U.S. financials conference.
He attributed the improvement in part to the bank’s credit portfolio, which does not include a credit-card business or lending to small businesses – sectors badly hit by the COVID-19 pandemic.
Gorman also said the bank expects to cover its dividend “very easily” this year. He added that a “vast majority” of employees will continue to work in offices, and that the bank will not move staff out of big cities.
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