While fourth-quarter revenue from brokerage services posted a sharp 20% over-over-year decline, the overall wealth management business still managed to come out ahead.

Fourth-quarter revenue jumped 19% year-over-year, while profits soared 57%.

James Gorman laid out plans for the wealth management unit, which turned in record earnings for the fourth quarter.

The advisory business ended the year on a strong note, boosted by growth in net interest income, which rose 14% year-over-year.

The business, which includes Merrill Lynch, said profits were up 1.8% year-over-year, but down 9% from the previous quarter.

CEO Ron Kruszewski says market conditions and the fiduciary rule are dampening growth at the firm and throughout the industry.

Amid reports of a possible sale, assets rise and expenses fall.

CEO Sergio Ermotti pledged that cost-cutting efforts are to continue.

Client assets for the firm's advisory business hit a record high.

"Optimizing choice for our clients … is critical to how we operate as a firm," CEO James Gorman said during an earnings call where the wirehouse reported net revenue was a record $3.9 billion last quarter.

Headcount rises for the 11th consecutive quarter for the wirehouse, which is prepping for the Department of Labor's fiduciary rule.

J.P. Morgan Chase, Citigroup, First Republic and Bank of America were among the institutions questioned on the issue of incentive compensation.

Net income for the wealth management unit rose to $677 million from $606 million for the year-ago period.

Profits and revenues are down for all but one of the brokerages.

Revenue continues to fall for the industry's largest brokerages, but lending remains strong.

"I think the DoL rule has a disproportionate impact on the independent business, and that affected our decision-making," says Ron Kruszewski.

With core business down and adviser headcount shrinking, the brokerage nets a profit by selling non-essential divisions.

Lending and cost cutting helped drive net income higher during the recent quarter, the wirehouse reported.

The country's largest independent broker-dealer added 100 advisers in the second quarter.

Net revenues fell 2% in the second quarter compared to a year ago, according to the firm.