Morgan Stanley reported a sharp fall in quarterly profit as the Wall Street bank was hit by $1.2 billion in legal bills, but adjusted earnings beat market estimates.
Net income from continuing operations applicable to the company fell to $192 million, or 7 cents per share, in the fourth quarter from $661 million, or 33 cents per share, in the same quarter of 2012, the bank said on Friday.
Excluding items that included the legal expenses, the bank earned 50 cents per share, according to Thomson Reuters, beating the average analyst estimate of 45 cents per share.
Net revenue from continuing operations rose 12.5 percent to $7.83 billion.
Morgan Stanley shares, which have risen 56 percent in past 12 months, were up before the opening bell. (Click here to track the company's shares following the report.)