Morgan Stanley's Q1 2025 earnings report

Morgan Stanley Surpasses Q4 Earnings Expectations with Strong Trading Revenue, Wealth Management Growth

Jan 16, 2025, 12:41 PM

Morgan Stanley reported its fourth-quarter earnings for 2024, surpassing Wall Street's expectations. The bank's earnings per share (EPS) was $2.22, beating the LSEG estimate of $1.70. Revenue for the quarter reached $16.22 billion, exceeding the anticipated $15.03 billion. Key drivers of the earnings beat included a 51% year-over-year increase in equity trading revenue to $3.33 billion, and a 35% rise in fixed income revenue to $1.93 billion. The wealth management segment also performed well, with net revenue of $7.48 billion against an estimate of $7.32B. Morgan Stanley's CEO, Ted Pick, highlighted the firm's strong performance, noting a return on tangible common equity (ROTCE) of 20.2% for the quarter and 18.8% for the full year. The bank's full-year net revenues were $61.8 billion, with an EPS of $7.95. Investment banking activity saw a 29% increase in the quarter, driven by advisory and equity capital markets. The firm's stock rose 1.2% in pre-market trading following the announcement. Additionally, Morgan Stanley reported net interest income of $2.55 billion, total deposits of $376.01 billion, and non-interest expenses of $11.20 billion.