Morgan Stanley's first-quarter profit fell 45% as a $655m pretax loss from its joint venture with Mitsubishi UFJ Financial Group and weaker bond trading weighed on results at the investment bank.

Fixed income trading, a drag on Morgan Stanley's results for more than a year, fell by a third from a year ago to $1.8bn as the firm continues to build out that business in its second year under chief executive James Gorman. In wealth management, revenue and net income both jumped.