Morgan Stanley posts bumper Q4, record full-year revenue
By Josh White
Date: Thursday 16 Jan 2025
(Sharecast News) - Morgan Stanley ended 2024 with a robust fourth quarter, reporting a more than doubling of net income on Thursday to $3.7bn, or $2.22 per share, surpassing analyst expectations for $1.70 per share.
Quarterly revenue jumped 26% year-on-year to $16.2bn, driven by strong trading and investment banking performance, marking one of the firm's best years with full-year revenue reaching a record $61.8bn.
The bank's equities trading division led the way, posting a 51% increase in revenue to $3.3bn, buoyed by heightened market activity following Donald Trump's re-election as US president.
Fixed income revenue also rose sharply, climbing 35% to $1.9bn, as Morgan Stanley continued its push to strengthen the business.
The wealth management unit contributed $7.5bn in revenue, a 13% increase, supported by record results in asset management.
Total client assets reached $7.9trn, with the bank targeting $10trn in managed assets over the coming years.
Investment banking fees increased by 25% in the fourth quarter, generating $1.64bn.
Advisory fees reached $779m, equity underwriting brought in $455m, and debt underwriting contributed $407m.
For the year, the bank's $6.2bn in investment banking fees represented a 35% increase compared to 2023.
That reflected a rebound in dealmaking, as companies refinanced debt and engaged in mergers and acquisitions amid easing interest rates.
"An excellent fourth quarter with a 20% ROTCE followed three quarters of consistent execution for Morgan Stanley, capping off one of the strongest years in the firm's history," said chairman and chief executive officer Ted Pick.
"Institutional securities saw strength across markets and continued improvement in investment banking.
"We are executing against four pillars - strategy, culture, financial strength and growth - that support our Integrated Firm, creating long-term value for our shareholders."
Compensation costs for the year increased by 8% to $26.1bn, reflecting the bank's investments in talent and leadership changes.
Despite these expenses, the firm secured a fourth-place finish in global investment banking fee league tables with a 5.9% market share, according to Dealogic.
At 0854 EST (1354 GMT), shares in Morgan Stanley were up 2.01% in premarket trading in New York, at $133.17.
Reporting by Josh White for Sharecast.com.
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