Morgan Stanley quarterly profit beats on wealth management, M&A boom

Morgan Stanley beat quarterly profit expectations on Wednesday as the Wall Street investment bank capitalised on a boom in mergers and acquisitions and generated robust fees from advising on deals.

The bank's wealth management unit also turned in a strong fourth quarter with revenue rising more than 10% to $6.25 billion.

Morgan Stanley's results rounded out a mixed earnings season for the nation's largest banks that rode the M&A boom, but were dragged down by weak trading and higher expenses, which surged as they splurged to retain key personnel in a race for talent.

Dealmaking activity is expected to remain robust