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(Reuters) -Morgan Stanley’s profit more than doubled in the fourth quarter, fueled by a wave of dealmaking and stock sales that drove its revenue to a full-year record.
The earnings rounded out a robust quarter for Wall Street banks, which benefited from a surge in mergers and acquisitions due to a strong U.S. economy, interest-rate cuts and expectations of lighter regulation under incoming President Donald Trump.
It also wraps up a strong first year for CEO Ted Pick, who had won a three-man contest for the top job. Pick said 2024 was “one of the strongest years in the firm’s history” as Morgan Stanley garnered record net revenue of $61.8 billion.
“We are executing against four pillars – strategy, culture, financial strength and growth – that support our integrated firm, creating long-term value for our shareholders,” he said, citing growth in investment banking and wealth management.
Busier activity across geographies, notably in Asia and the Americas, lifted its equity trading revenue by 22% to a record.
Morgan Stanley’s quarterly investment banking revenue rose 25% to $1.64 billion, echoing results at rivals Goldman Sachs and JPMorgan Chase on Wednesday.
Profit grew to $3.7 billion, or $2.22 per share, for the three months ended Dec. 31, compared with $1.5 billion, or 85 cents per share, a year ago. Analysts, on average, had expected $1.7 per share, according to estimates compiled by LSEG.
The bank also benefited from easier comparisons with last year, when it took certain one-time charges to refill a government deposit insurance fund and to settle a government probe.
Shares of the investment bank were up 1% before the bell. Last year, they were among the top performers in the large-cap banking category, gaining nearly 50%.
Globally, investment banking revenue jumped 26% to $86.80 billion in 2024, according to data from Dealogic. Wall Street CEOs and dealmakers expect more large deals to be approved under the Trump administration than his predecessor Joe Biden.
Investment banks have also cashed in on rallying equities, which encouraged initial public offerings and follow-on stock sales, while lower borrowing costs led companies to issue bonds.
WEALTH MANAGEMENT
Morgan Stanley’s revenue from wealth management rose 13% to $7.5 billion, helped by record revenue in asset management.
The unit provides the bank with stable income, offsetting the volatility from investment banking and trading.
The bank has set a target of managing $10 trillion in client assets. Total client assets in the quarter were $7.9 trillion.
