Morgan Stanley reported a better-than-expected quarterly profit on Tuesday, driven by higher revenue in its stock trading and equity underwriting businesses. Equity trading revenue rose 7 percent in a quarter marked by uncertainties in global financial markets stemming from an ongoing tariff war between the United States and China.
Morgan Stanley's bond trading revenue rose 1 percent, outperforming traditional competitor Goldman Sachs Group Inc, which reported a 10 percent fall in revenue at the business. Bond trading at Wall Street's top bank - JPMorgan - declined 10 percent in the third-quarter. Morgan Stanley's overall revenue rose a better-than-expected 7.3 percent, also helped by a 62 percent jump in equity underwriting revenue.
The bank's sales and trading revenue, its biggest contributor to total revenue, rose 7.5 percent and came in better than that of JPMorgan Chase & Co and Citigroup Inc.
Net income attributable to Morgan Stanley rose to $2.11 billion, or $1.17 per share, in the third quarter ended Sept. 30, from $1.78 billion, or 93 cents per share, a year ago.
Chief Executive Officer James Gorman has restored Morgan Stanley to health since taking over in 2010, when the bank was still reeling from the financial crisis.