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An improving consumer banking business helped offset a drop in trading revenue.
The investment banking unit of HSBC also reported a drop in trading.
A drop in trading, especially in the second quarter, led income from bonds, currencies and commodities to fall 20 percent.
Shares of Morgan Stanley tumbled 5.4 percent, falling to their lowest level since January, after the bank's quarterly results showed a sharp drop in trading revenue.
Analysts noted that they expected the turmoil in the Middle East to make institutional investors more cautious with their cash, leading to a drop in trading revenue.
Sweden's experiment with hefty levies on share, bond and derivative trades in the 1980s was abandoned in 1991, after it led to a sharp drop in trading volumes.
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Even though China may import less in 1997-98, risinglobalal consumption and a drop in barter trade by Central Asian exporters could lead to higher prices.
It estimates that a 1% drop in trade costs might raise global income by $40 billion.
But many small-business owners report a 70-80% drop in trade since the violence picked up in January.
They estimate that a Brexit vote could lead to a short-term drop in trade-weighted sterling of 15-20%.
Pulse Wholefoods on Kings Road in Pontcanna, was under threat of closure last year following a drop in trade during the recession.
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