Investing.com -- Morgan Stanley reported fourth-quarter earnings and revenue that surpassed analyst expectations, driven by strong performance across its business segments. The investment bank's stock edged up 0.8% following the release.
The firm posted adjusted earnings per share of $2.22, beating the analyst consensus of $1.64. Revenue came in at $16.2 billion, exceeding estimates of $14.76 billion and marking a 26% increase from $12.9 billion in the same quarter last year.
Institutional Securities, the company's trading and investment banking division, saw net revenues surge 47% year-over-year to $7.3 billion. Equity trading revenue jumped 51% to $3.3 billion, while fixed income trading revenue rose 35% to $1.9 billion.
Wealth Management revenue grew 13% to $7.5 billion, supported by record asset management revenues and higher transactional activity. Investment Management revenue increased 12% to $1.6 billion on higher average assets under management.
"An excellent fourth quarter with a 20% ROTCE followed three quarters of consistent execution for Morgan Stanley (NYSE:MS), capping off one of the strongest years in the Firm's history," said Ted Pick, Chairman and CEO.
For the full year 2024, Morgan Stanley reported net revenues of $61.8 billion, up from $54.1 billion in 2023. Net income applicable to the firm rose to $13.4 billion, or $7.95 per diluted share, compared to $9.1 billion, or $5.18 per share, a year earlier.