Morgan Stanley reported better-than-expected first-quarter earnings on Wednesday, but shares dipped in premarket trading due to a decline in profit. The bank's earnings for the quarter came in at $3 billion, or $1.70 a share, on revenue of $14.5 billion. Despite beating the estimated earnings of $1.62 per share and $13.92 billion revenue, shares of the bank still dropped by 3.8%, as profit margins were affected by high compensation costs. The decline was also attributed to a 19% fall in profit due to a decrease in investment banking and trading. However, Morgan Stanley's wealth management business continued to report strong growth. Revenue grew 11% to $6.56 billion from the year-earlier period, helped by high rates and loan growth, which offset lower asset management revenues. CEO James Gorman commented on the report, saying they have added a robust $110 billion in net new assets this quarter. "Equity and fixed-income revenues were strong, although investment banking activity continued to be constrained", he said.