Morgan Stanley's wealth management division added assets and clients as its parent reported disappointing third quarter results.

The wealth unit, which includes a 51% stake in Morgan Stanley Smith Barney, added $5 billion in client assets during the quarter a quarter after reported $5.5 billion in withdrawals.

Morgan Stanley's wealth unit increased its assets under management 5% to $1.6 trillion as net revenue increased 1% to $3.1 billion.

In the quarter, the company added 32 advisors to give it a total of 18,119. Advisors generated an average of $686,000 in annual fees and commissions, up 4% from a year earlier.

The parent company reported a net loss for the third quarter amid results that were well below expectations on the Street.

Overall, the company reported a $91 million loss, or 7 cents a share, down from a a gain of $498 million, or 38 cents per share, a year earlier. Net revenue declined to $6.78 billion from $8.47 billion a year earlier.

Analysts said that the results are indicative of the difficult trading cycle that has plagued the industry. On Tuesday, Goldman Sachs reported that earnings declined 40% to $1.9 billion, or $2.98 a share from a year earlier.

Revenue from trading declined 58% to $1.44 billion from a year ealier. James P. Gorman, Morgan's chief executive officer, described the company's sales and trading as “muted.”

 “Although we continued to make progress across some key businesses this quarter, our results in aggregate clearly do not reflect the true potential of Morgan Stanley’s global client franchise and I am not satisfied with our overall performance,” he said.

During its quarterly earnings call, the company confirmed that it will spin off FrontPoint Partners, its Greenwich, Conn., hedge fund business, which it bought four years ago.