Wall Street bank Morgan Stanley's profit doubled in the last quarter of the year, far exceeding expectations, as trading activity surged following the US presidential election.
Earnings applicable to the bank's common shareholders soared to $1.51 billion in the three months ended December 31 from $753m a year earlier.
The bank said its earnings for the three month period per share increased to 81 cents from 39 cents.
Analysts on average had expected a profit of 65 cents per share, according to Thomson Reuters I/B/E/S.
Trading in debt securities and stocks shot up in the wake of Donald Trump's surprise election victory on November 8 as investors took the view that he would push policies that would boost the US economy and kindle inflation.
Revenue in the bank's fixed-income business jumped to $1.5 billion in the quarter from $550m the same time last year, an increase of about 173%.
JPMorgan Chase & Co, the biggest US bank by assets, reported a 31% rise fixed-income revenue last week.
Second-ranked Bank of America said its revenue from trading fixed-income securities, currencies and commodities rose 12%.
Goldman Sachs Group - Morgan Stanley's traditional rival - reports its quarterly results tomorrow.
Morgan Stanley's shares have risen 28.5% since the US election.
Investors hope Trump will usher in a new era of looser bank regulations along with economic growth.
"We reported solid results in sales and trading and advisory and record revenues in wealth management, while managing expenses prudently", the bank's chief executive James Gorman said in a statement.
Revenue from equities trading, a business in which Morgan Stanley is typically strong, rose to $2 billion from $1.8 billion.
Revenue from wealth management, which Morgan Stanley has been building for several years, rose 6.4% to $3.99 billion.
The bank said the pretax margin in the business increased to 22% from 20% a year earlier.
Total revenue jumped 16.6% to $9.02 billion, beating the average estimate $8.47 billion.
The bank's return on equity was 8.7% in the quarter, short of Gorman's target of 9-11% by the end of 2017.
Investment banking revenue, which includes income from advising on mergers and acquisitions as well as underwriting bond and share offerings, rose 5.1% to $1.38 billion.
The bank, which has said it wants to cut costs by $1 billion this year, said non-interest expenses rose 7.6% to $6.78 billion in the latest quarter.
Total compensation and benefits expenses rose 11.9% to $4.08 billion in the three month period.
Morgan Stanley ranked second in worldwide announced merger and acquisition deals during 2016, according to Thomson Reuters data.
The bank laid off a number of senior investment bankers earlier this month and cut bonuses by roughly 15%, according to sources familiar with the matter.
