(Reuters) – Morgan Stanley’s profit rose in the fourth quarter, boosted by a wave of dealmaking and share sales that drove revenue to a full-year record.
Investment banking fees gained from a surge in mergers and acquisitions as sentiment was boosted by a strong US economy, interest rate cuts and expectations of looser regulation under US President-elect Donald Trump.
“We operate on four pillars – strategy, culture, financial strength and growth – that underpin our integrated company, creating long-term value for our shareholders,” said CEO Ted Pick, citing growth in investment banking and wealth management.
Morgan Stanley (NYSE: ) posted record net income of $61.8 billion for 2024. Stronger activity across geographies, particularly in Asia and the Americas, lifted its equity trading revenue by 22% to a record.
Its quarterly investment banking revenue rose 25% to $1.64 billion, echoing the results of rivals Goldman Sachs and JPMorgan, which also reported higher profits on Wednesday.
Its earnings rose to $3.7 billion, or $2.22 a share, for the three months ended Dec. 31, compared with $1.5 billion, or 85 cents a share, a year earlier.
The bank also benefited from an easier comparison with last year, when certain one-off fees were required to refill the state’s deposit insurance fund and resolve a government investigation.
Shares of the investment bank rose 1.1% before the bell.
Globally, investment banking revenue will jump 26% to $86.80 billion in 2024, according to Dealogic. CEOs and traders on Wall Street expect more big deals to be approved under the Trump administration than under his predecessor, Joe Biden.
Investment banks also profited from rising stocks, which spurred initial public offerings and subsequent share sales, while lower borrowing costs prompted companies to issue bonds.
