The bank reported earnings per share of 93 US cents, compared to 81 US cents in the year-ago period and market forecasts for unchanged results.
READ: Morgan Stanley reports growth in both revenues and earnings per share, beating market expectations
Revenue rose to US$9.2bn from US$8.9bn last year, boosted by growth in wealth management. Analysts had expected revenue of US$9.0bn.
Shares rose 1.35% to US$49.60 each in pre-market trading in the US following the results.
Wealth management net revenue gained to US$4.2bn from US$3.8bn, supported by asset management fee revenues and net interest income.
Trading business faces subdued environment
Investment management net revenue edged up to US$675mln from US$552mln and assets under management grew to US$447bn from US$417bn.
Revenue in the institutional securities division increased to US$4.3bn from US$4.5bn as growth in investment banking offset a declines in sales and trading, and fixed income.
“Our third quarter results reflected the stability our wealth management, investment banking and investment management businesses bring when our sales and trading business faces a subdued environment," said Morgan Stanley chairman and chief executive James Gorman.