Morgan Stanley has emerged from the tumultuous third quarter in better shape than most of its Wall Street rivals.
While other banks reported declines in trading and advisory revenue, Morgan Stanley increased its income from advising companies on deals and trading for its clients.
The New York investment bank said it earned 2.2 billion US dollars (£1.4 billion) in the period, which also included a big accounting gain.
Morgan Stanley's results were in striking contrast to its chief Wall Street rival Goldman Sachs, which on Tuesday reported a 428 million US dollars (£271 million) net loss.
The quarter was marked by heavy turbulence in financial markets, brought on by the debt crisis in Europe and a downgrade of the US government's credit rating.
Morgan Stanley's chief financial officer Ruth Porat attributed the firm's relatively strong performance to the bank's strategy of aggressively going after market share even during uncertainty.
"Surveys from (research firm) Greenwich Associates indicate that we gained more fixed income volume share than any other dealer over the last year," Ms Porat said in an interview.
Morgan Stanley's net income applicable to common shareholders was 1.15 US dollar a share on 9.9 billion US dollars (£6.3 billion) in revenue. Analysts expected earnings of 30 cents per share, according to FactSet.
In the same period a year ago, the bank had a loss of 91 million US dollars (£57 million), or seven cents per share, on revenue of 6.8 billion US dollars (£4.3 billion).
Unlike its rivals, Morgan Stanley had an increase in trading revenue as its clients were more active in their stock, debt and derivatives dealings. Investment banking advisory business also increased 11%. Each of the trading businesses had accounting gains related to the changing value of the company's debt.