Morgan Stanley reported a 35% rise in fourth-quarter earnings on record revenue from its brokerage operations. Fixed-income trading revenue was the lowest in two years.

Net income rose to $836 million, or 41 cents a share, from $617 million, or 29 cents, a year earlier, the company said Thursday.

Earnings from continuing operations were 20 cents a share, falling short of the 28 cents estimated by analysts, according to Bloomberg News.

Morgan Stanley had higher investment banking revenue than Goldman Sachs Group Inc. for the second time in the past three years and the highest brokerage profit margin since it bought a controlling stake in a joint venture with Citigroup Inc.'s Smith Barney in 2009.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.