Morgan Stanley’s profits rose in the third quarter as the recovery accelerated.

Morgan Stanley reported profits of $3.19 billion, or $1.88 per share, for the three months ended Sept. 30. That compares with $4.41 billion, or $1.38 per share, in the same period a year earlier.

A revival in corporate debt issuance, initial public offerings and mergers has boosted investment bank profits this year.

With markets near record levels and the U.S. Federal Reserve beginning its policy easing cycle, bankers voiced optimism that M&A activity will continue to recover after a two-year drought.

Morgan Stanley’s investment banking revenues rose 56% in the third quarter.

Global investment banking revenues across the industry rose 21% in the first nine months of the year, led by a 31% increase in North America, according to Dealogic data.

Morgan Stanley earned the fourth highest wages globally during the same period, the data showed.