Updated version 1 - Morgan Stanley achieves profit growth thanks to strong stock trading performance

Full text supplemented with details

Reuters Oct 14 - Morgan Stanley MS.N reported on Wednesday a rise in third-quarter profits, thanks to strong equity trading performance amid persistent market volatility triggered by the U.S. Federal Reserve’s interest rate decisions and U.S.-Iran tensions.

Market turbulence has forced investors to adjust their portfolios, resulting in increased trading volumes and boosting the bank’s trading revenues. Morgan Stanley’s equity trading income reached $5.8 billion, an increase of nearly 41% compared to the same period last year.

Goldman Sachs Group (GS.N)—whose third-quarter profits exceeded market expectations the previous day—also reported a similar rise in equity trading income.

Morgan Stanley’s fixed-income trading income decreased by 7.3% to $2.01 billion. This slowdown mirrors Goldman Sachs' results, whose fixed income, foreign exchange, and commodity income was down 1% from the same period last year.

For the three months ending September 30, Morgan Stanley reported net income attributable to shareholders of $4.91 billion, or $3.03 per share, compared to $4.61 billion or $2.80 per share last year.

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