Morgan Stanley swung to a first-quarter profit as the investment bank benefited from a comparison with a year-earlier period that was bogged down by a heavy charge tied to changes in the value of its debt, although core earnings weakened.

For the quarter, the bank reported a profit of $984m, compared with a year-earlier loss of $94m. The per-share profit, which reflects the payment of preferred dividends, was 49 cents compared with a loss of six cents a year earlier.