Morgan Stanley's quarterly profit more than halved as the Wall Street bank's trading and investment banking businesses took a hit from market volatility early in the year.

Earnings applicable Morgan Stanley's common shareholders fell 54.4 percent to $1.06 billion, or 55 cents per share, in the quarter ended March 31, from $2.31 billion, or $1.18 per share, a year earlier. Excluding an accounting adjustment, the bank also earned 55 cents per share.

Analysts on average had expected earnings of 46 cents per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported figures were comparable.