Morgan Stanley reported a smaller-than-expected 41 percent drop in fourth-quarter profit on Tuesday as the bank’s trading business got a boost from market volatility, offsetting the hit from sluggish dealmaking.

Dealmaking was at a virtual halt for most of last year as risk appetite waned sharply in the face of rapidly deteriorating macroeconomic conditions and geopolitical tensions.

The gloom follows what was a bumper 2021 for Wall Street’s investment bankers who advised on multi-billion dollar mergers and buyouts, while underwriting listings of some of the biggest clients to tap the public markets in over a decade.

Revenue from Morgan Stanley’s investment banking business fell 49 percent to $1.25 billion in the fourth quarter, with revenue declines across the bank’s advisory, equity, and fixed income segments.

The investment banking business slowdown weighed on the company’s net revenue, pulling it down 12 percent to $12.7 billion.

“As far as investment banking is concerned, it has been a rough year for the stock market so I don’t think anyone expects the industry to report huge earnings,” Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said.

Trading has been a surprise bright spot for Morgan Stanley, with the unit’s revenue jumping 26 percent to $3.02 billion in the fourth quarter, as clients look to hedge against market risks by rejigging portfolios toward more defensive assets.

The company’s shares, which lost about 13 percent of their value last year, rose about 1.7 percent in premarket trading to $93.25.

The bank’s wealth management business, which tends to generate steady income, saw revenue climb 6 percent in the quarter, as interest income increased amid the U.S. Federal Reserve’s interest rate hikes through most of last year.

Morgan Stanley wraps up a mixed fourth-quarter earnings for the big U.S. banks. Its closest rival Goldman Sachs Group Inc. on Tuesday reported a bigger-than-expected 69 percent drop in quarterly profit due to heavy losses in its consumer business and a slump in dealmaking.

On an adjusted basis, Morgan Stanley earned $1.31 per diluted share, the bank said.

Profit applicable to the company’s common shareholders for the three months ended Dec. 31 was $2.11 billion or $1.26 per diluted share.

According to Refinitiv data, analysts expected the bank to report a profit of $1.19 per share.

Morgan Stanley increased its provision for credit losses in the fourth quarter to $87 million from $5 million a year earlier amid worries of a looming recession in the U.S. and worsening consumer credit quality.

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