Morgan Stanley profit beats estimates on wealth management, lower costs

(Reuters) - Morgan Stanley beat analysts’ estimates for a quarterly profit on Wednesday on gains in its wealth management business and lower expenses, sending its shares up 3 percent.

FILE PHOTO: The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in New York, U.S. April 17, 2017.

The company has been striving to grow its wealth management business, which provides financial advice to wealthy clients, to reduce its dependence on trading, which is more exposed to swings in market volatility.

Trading for Morgan Stanley, as with other large Wall Street banks, was weak.

Morgan Stanley’s investment banking revenue dropped 24 percent, hurt mainly by declines in its underwriting business, which includes initial public offerings, and lower advisory fees.

The bank said earnings attributable to common shareholders fell 9 percent to $2.34 billion, or $1.39 per share.

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