American investment banking giant Morgan Stanley reported quarterly earnings Monday, falling well short of analysts’ expectations. The company's stock dropped 5.7 percent in pre-market trading immediately after the announcement.

The firm posted net revenues of $7.8 billion for the third quarter ended Sept. 30, 2015 compared with $8.9 billion a year ago, and net income of $1.02 billion, or 48 cents a share, from $1.69 billion, or 83 cents, a year earlier. Analysts had expected earnings of 62 cents a share, and revenue of $8.54 billion. Moreover, excluding accounting gain, earnings slipped to 34 cents a share from 64 cents a year earlier.

“The volatility in global markets in the third quarter led to a difficult environment, impacting in particular our Fixed Income business and our Asia Merchant Banking business,” Chairman and CEO James P. Gorman said, in a statement. “The firm benefited from the stability of the Wealth Management business, our ongoing leadership in Equities and the continued strength of our Investment Banking franchise.”

The report is the latest in a series of dismal results posted by U.S. banks in the third quarter.

Last week, Goldman Sachs Group Inc, Citigroup Inc, Bank of America Corp and JPMorgan Chase & Co had all reported a drop in bond-trading revenue -- as uncertainties persisted over the timing of a rate hike in the U.S. and concerns over China’s slowing economy loomed large. 

Since the start of the year, Morgan Stanley’s shares have fallen 13 percent.