Morgan Stanley’s institutional securities arm swung back to profit for the first time this year in the three months to September, on the back of “particularly strong” investment banking results and a rebound in sales and trading revenues.

The Wall Street bank, which has switched its fiscal year-end to December from November since posting third-quarter results last year, today revealed its institutional securities unit turned in a pre-tax profit of $1.3bn (€869m) in the third quarter this year, after incurring losses over the first two quarters.