Morgan Stanley Profit Drops 9% in Third Quarter as Investment Banking Slows

Morgan Stanley's third-quarter profit dropped about 9% to $2.4 billion as investment banking revenue fell.

Wealth management net new assets shrank to $35.7 billion from $64.8 billion a year earlier.

CEO James Gorman said he expects most business activity to pick up next year.

The bank set aside $134 million for credit losses, up sharply from $35 million a year earlier.

Gorman said the bank is close to announcing a successor when he steps down as CEO within a year.