The company’s stock rose 1.4 percent in the premarket Thursday. Morgan Stanley shares are up 4.1 percent this year, slightly outperforming the S&P 500, which is up 3.9 percent.
Morgan Stanley’s bottom line excludes a one-time $990 million hit resulting from the recent changes to the U.S. tax code. Its earnings per share totaled 29 cents when including the charge.
President Donald Trump signed a bill last month that slashed the corporate tax rate to 21 percent from 35 percent. The changes are expected to be a long-term positive for companies, but some have taken one-time charges because of them. Some of these companies include Citigroup and Bank of America.
Morgan Stanley’s results come a day after Goldman Sachs — another bank known for its trading business — reported a revenue decline of 50 percent in its fixed income, currencies and commodities trading business.
Goldman said trading is in a “challenging environment characterized by low levels of volatility and low client activity.”
— CNBC’s Wilfred Frost contributed to this report.