Net revenues for the quarter were $3.3 billion, down slightly from the $3.2 billion logged a year ago. Meanwhile, the pre-tax margin for the quarter was 7 per cent, although excluding $193 million of non-recurring costs associated with the MSWM integration and purchase of an additional 14 per cent take in the joint venture, the pre-tax margin stood at 13 per cent.

The firm said that asset management fee revenues of $1.8 billion increased 3 per cent from the third quarter of 2011, "primarily reflecting an increase in fee-based assets and positive flows".

Total global wealth management client assets were $1.8 trillion at the end of the quarter, while assets in fee-based accounts came to $556 billion - equal to 31 per cent of total client assets. Global fee-based asset flows for the quarter were $7.5 billion, up from $4.1 billion in Q2.

Compensation expense for the quarter was $2.1 billion compared with $2 billion a year ago, while non-compensation expenses of $1 billion increased from $884 million a year ago, "reflecting non-recurring costs of approximately $176 million primarily associated with the MSWM integration," the firm said.

"We are beginning to unlock the full potential of the global wealth management franchise, having increased our ownership of, and agreed on a purchase price for the rest of Morgan Stanley Wealth Management," said James Gorman, chairman and chief executive. "I am confident in our potential to enhance profitability and increase value for our shareholders in the quarters ahead."

Across its business, Morgan Stanley reported net revenues of $5.3 billion for the third quarter, down from $9.8 billion a year ago.