Morgan Stanley says revenue was down sharply in the second quarter.
Net income rose to $564 million from a loss last year of $558 million, when the bank took big charges to cut down its obligations to a Japanese financial firm that is a shareholder.
Earnings came to 29 cents per share. Analysts surveyed by FactSet were expecting 32 cents.
Revenue tumbled 24 percent to $7 billion from $9.2 billion. That number included the benefit of an accounting gain.
The biggest change was in the institutional securities unit, where profits plunged 63 percent. That unit includes investment banking services like trading stocks and bonds. Profits also fell slightly in wealth management and asset management.
The stock is down 3 percent in pre-market trading, losing 40 cents to $13.59.