Mubasher: Morgan Stanley’s net income surged 138% year-on-year in the fourth quarter of 2018, but fixed income trading dropped, on increased volatility at the end of the quarter.

The US bank’s net income rose to $1.53 billion in Q4-18, up from $643 million in Q4-17. Earnings per diluted share (EPS) rose year-on-year to $0.80 in the reported period from $0.26.

Morgan Stanley’s total revenue dropped 10% to $8.54 billion during the period between October and December 2018, compared with $9.50 billion in the same period last year.

Wealth management division produced $4.14 billion in the three-month period ended last December, versus $4.40 billion in the year before.

Revenue from the investment banking unit, including deal advisory and stock and bond issuance, came in at $1.48 billion in the fourth quarter, down from $1.54 billion in the same quarter of the prior year.

“While the global environment remains uncertain, our franchise is strong and we are well positioned to pursue growth opportunities and serve our clients,” Morgan’s CEO James Gorman said.

The investment management arm, the smallest of the bank’s three main divisions, generated $684 million in revenue in the three months ended last December, compared with $637 million in the comparable three months of the preceding year.

Revenues from fixed income sales and trading dropped to $564 million during the quarter, from $808 million a year ago.