Morgan Stanley's profit slipped 18% in the second quarter as Wall Street's deal-making drought stunted revenue from investment banking.

Profit applicable to common shareholders fell to $2.05 billion, or $1.24 per diluted share, for the three months ended June 30, the bank said on Tuesday. That is down from $2.39 billion, or $1.39 per diluted share, a year earlier.

(Reporting by Mehnaz Yasmin and Niket Nishant in Bengaluru; Editing by Lananh Nguyen and Arun Koyyur)