Morgan Stanley 's ( MS - Free Report ) second-quarter 2023 earnings of $1.24 per share surpassed the Zacks Consensus Estimate of $1.14. However, the bottom line reflects a decline of 11% from the year-ago quarter. As expected, the performance of the investment banking ("IB") business was not very impressive. While equity and fixed income underwriting fees increased 52% and 21%, respectively, from the prior-year quarter, advisory fees declined 24%. Therefore, total IB fees increased only marginally from the prior-year quarter. Further, because of subdued volatility and client activity, Morgan Stanley's trading business performance was weak. Fixed-income trading revenues decreased 31% and equity trading income declined 14% year over year. Higher expenses and provisions were the other headwinds in the quarter.