Morgan Stanley profit jumps 87pc

SAN DIEGO,  Oct 17 (Reuters) :  Morgan Stanley reported an 87 per cent rise in third-quarter earnings as the Wall Street bank's trading and wealth management businesses benefited from increased client activity.
Net income attributable to common shareholders rose to $1.65 billion, or 84 cents per share, in the three months ended Sept.30 from $880 million, or 45 cents per share, a year earlier.
The stable fee income Morgan Stanley receives for advising individuals on their finances is becoming more important to the bank as it reduces its exposure to the volatile trading business and is required to comply with tighter capital regulations.
But it was a surge in revenue from the trading of bonds, currencies and commodities that was mainly responsible for the surge in earnings and revenue in the latest quarter.
Bond trading revenue, excluding accounting adjustments, rose 19.4 per cent to $997 million after a sudden increase in market volatility last month that also boosted its Wall Street rivals.