Net income for the New York-based bank was $1.4 billion, or 99 cents per share, versus a loss of $578 million, or 57 cents per share, a year earlier.
Net revenue was $9.1 billion.
Morgan Stanley, which reported a yearly loss for 2009, is looking for a rebound year in 2010 under the leadership of new chief executive James Gorman. Gorman shuffled his leadership team as he took the helm of the firm at the start of the year.
Morgan Stanley is also in the process of integrating Morgan Stanley Smith Barney, the largest retail brokerage.
Shares of Morgan Stanley closed at $30.45 on Tuesday, up 3.01 percent.
(Reporting by Steve Eder, editing by Gerald E. McCormick)