Morgan Stanley Group Inc (MS.N) reported a 58.8 per cent slide in quarterly profit on Thursday, as the bank took a one-time provision of about US$1.2 billion for the new U.S. tax law.

Net income in the company's fourth quarter fell to $686 million or 29 cents per share in the fourth quarter ended Dec. 31, from US$1.67 billion or 81 cents per share, last year.

Excluding the one-off charge and other items, Morgan Stanley's adjusted profit was US$1.68 billion, or 84 cents per share.

Analysts on average were looking for 77 cents per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the numbers were comparable.