Last Thursday, January 16, Morgan Stanley published information about its earnings for the fourth quarter of 2024, which exceeded analysts’ preliminary expectations and demonstrated the positive dynamic due to the bank’s equities and fixed-income traders generating a result surpassing forecasts.
Last Thursday, January 16, Morgan Stanley published information about its earnings for the fourth quarter of 2024, which exceeded analysts’ preliminary expectations and demonstrated the positive dynamic due to the bank’s equities and fixed-income traders generating a result surpassing forecasts.
The revenue of the mentioned financial institution based in New York City for the three-month period ended December 31 was recorded at the $16.22 billion mark. This indicator showed an increase of 26% year-on-year. At the same time, LSEG’s preliminary forecast stipulated that the financial institution’s revenue for the fourth quarter of 2024 would be fixed at the $15.03 billion mark. The final result was driven by the fact that the performance indicators in all of the bank’s major businesses improved.
Earnings per share for the last quarter of 2024 amounted to $2.22. The preliminary forecast of LSEG stipulated that this indicator would be fixed at the $1.7 mark.
The profit of the financial institution for the last three months of 2024 amounted to $3.71 billion. This indicator has more than doubled year-on-year. In the relevant context, it is worth mentioning that in the fourth quarter of 2023, the bank faced a pair of regulatory charges.
The equities trading business of a financial institution in the last quarter of 2024 showed the greatest progress relative to the figures of 2023 among other Morgan Stanley activities segments in terms of results. This business generated revenue of $3.3 billion over the mentioned period. The corresponding indicator showed an increase of 51% year-on-year. Also, the revenue of the bank’s specified business exceeded the StreetAccount estimate by almost $650 million.
Morgan Stanley noted the upward dynamic of customer activity. The bank also recorded the strengthening of its prime brokerage business, which caters to hedge funds.
The financial institution’s fixed-income operations generated revenue of $1.93 billion in the fourth quarter of 2024. This indicator increased by 35% year-on-year. Also, the financial result of the mentioned bank’s line of activity exceeded the StreetAccount estimate by about $250 million. In this case, the intensification of processes in the credit and commodities markets has become a factor contributing to the upward dynamic.
Morgan Stanley’s investment banking revenue for the fourth quarter of 2024 was recorded at the $1.64 billion mark. The growth of this indicator was 25% year-on-year. It is worth noting that the mentioned result almost coincided with the StreetAccount estimate. In this case, the revenue growth was driven by the increasing performance of the advisory and equity capital markets.
The financial institution’s revenue from wealth management-related activities for the fourth quarter of 2024 was recorded at the $7.48 billion mark. This indicator increased by 13% year-on-year. The upward dynamic of the revenue within the framework of the mentioned activities of a financial institution is related to rising asset levels and greater fees. This result is $120 million higher than the StreetAccount estimate.
Recently, in the United States, bank stocks have been on a growth trajectory amid increased expectations regarding the acceleration of deal activity. At the same time, for some financial institutions, including Morgan Stanley and its competitor Goldman Sachs, it was the trading side that became an upward dynamic factor. Traders of the mentioned banks took advantage of increased activity in the run-up to and after the November United States presidential election.
On Thursday, the value of Morgan Stanley shares in the premarket showed a growth of 2%.
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