On January 16, Morgan Stanley reported a more than doubled profit in the fourth quarter, driven by increased dealmaking and stock sales, leading to a record revenue for the full year.
The solid performance of the company in 2024 was supported by a surge in mergers and acquisitions, benefiting from a robust U.S. economy, interest-rate cuts, and expectations of lighter regulations.
It marked the end of a successful first year for CEO Pick, who described 2024 as "one of the strongest years in the firm's history," with a record net revenue of $61.8 billion. Looking ahead to 2025, Pick expressed optimism about the M&A pipeline and potential for stock offerings.
In the latest quarter, the bank's investment banking revenue climbed by 25% to $1.64 billion, mainly driven by fees from stock sales. Globally, investment banking revenue soared by 26% to $86.80 billion in 2024.
The impressive financial results were reinforced by Moody's as credit positive, highlighting the acceleration in trading revenue and robust asset flows, leading to a significant increase in capital ratios.
CFRA Research raised Morgan Stanley's shares target price following the earnings release, citing the bank's advantage in capital markets, wealth management, and investment banking sectors.
Moreover, Morgan Stanley's wealth management revenue grew by 13% to $7.5 billion, with record revenue in asset management, providing stability alongside the more volatile investment banking and trading segments.
The bank aims to manage $10 trillion in client assets and reached $7.9 trillion in the last quarter, with substantial net new assets coming from financial adviser relationships.
Morgan Stanley's workplace division, managing relationships for company employees, is expected to attract new assets through upcoming IPOs this year, as revenue surged by 26% to $16.2 billion in the fourth quarter, surpassing expectations.