Morgan Stanley reported a 40 per cent jump in quarterly profit on Wednesday, as its trading business got a boost from increased market volatility.

The bank's net income applicable to common shareholders rose to US$2.58 billion in the first quarter ended March 31 from US$1.84 billion a year earlier.

On a per-share basis, the company's earnings rose to US$1.45 from US$1.

Analysts on average were expecting a profit of US$1.25 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the numbers were comparable.

Shares of the sixth-largest U.S. bank rose 2.57 per cent to US$53.24 in pre-market trading.

After a subdued 2017, volatility has returned to the markets, roiling stocks, bonds, currencies and commodities on fears of a trade war between the United States and China as well as concerns about inflation.

This has led to big revenue gains at banks with sizable trading operations such as Morgan Stanley and Goldman Sachs.

Morgan Stanley's sales and trading revenue rose 26 per cent to $4.40 billion in the latest quarter, driven by a nearly 27 per cent gain in equities trading revenue.

Morgan Stanley's total revenue rose 13.7 per cent to US$11.08 billion.

"Each of our businesses performed well, with significant client engagement across our global franchise, and Sales and Trading a particular highlight in a more active environment," Chief Executive Officer James Gorman said in a statement.

Rival Goldman Sachs posted a 31 per cent increase in total trading revenue.