According to official figures from the investment bank, it saw an income of $1.4 billion or 80 cents per share compared with a $138 million loss or $1.36 per share in the same three-month period the previous year.
The results showed that the bank saw net revenue of $8 billion for the quarter compared with $5.2 billion the previous year.
Its performance was boosted by debt-related credit spreads providing the bank with positive revenue of $750 million compared with negative revenue of $2.3 billion from the second quarter of 2009.
James P Gorman, president and chief executive officer at Morgan Stanley, said: âWhile markets were challenging this quarter, Morgan Stanley benefited from a deliberate and disciplined focus on execution.
âWe strengthened leading market positions in our client-focused Investment Banking business, improved client flows in Sales and Trading, and continued progress on the integration of Morgan Stanley Smith Barney as well as the repositioning of our Asset Management business.â
Further figures from the bank revealed that compensation accounted for $3.9 billion, with $361 million used to pay the governmentâs bonus tax.
By Jim Ottewill