Morgan Stanley shelled out more for its investment bankers than at the height of the pre-crisis boom as its dealmakers hauled in record fees, but the bank followed rivals with missing market expectations on trading revenue.

The Wall Street bank paid $9.2bn in compensation costs within its institutional securities unit, an increase of 10% on 2020 and the highest figure in 14 years, according to historical analysis of pay figures. Banks have battled to hold on to both junior staff and key dealmakers amid an unprecedented boom in investment banking.