Morgan Stanley's lending business shines

New York

MORGAN Stanley's multiyear effort to build up its wealth management arm's lending business began to pay off on Monday as the unit emerged as one of the few bright spots in the bank's generally bleak quarterly earnings.

The New York-based bank said that profit in its wealth management group rose 6 per cent, helped by a 25 per cent increase in net interest income, a measure of lending income. That growth stood in stark contrast with slides in bond trading, investment banking and investment management.