Latest Morgan Stanley Earnings Report Q4 2024

Company Overview

Morgan Stanley (NYSE: MS) is a leading global financial services firm that provides investment banking, securities, wealth management, and investment management services. Founded in 1935, the firm is headquartered in New York City and operates in over 41 countries, employing more than 80,000 individuals. Morgan Stanley's clients include corporations, governments, institutions, and individuals. The firm is organized into three primary business segments: Institutional Securities, Wealth Management, and Investment Management. In 2024, Morgan Stanley reported a net income of $12.8 billion, a 50% increase from the previous year, and revenues of $61.76 billion, reflecting a 14% growth. This performance was driven by a 36% increase in investment banking activities and a 15% rise in asset management revenues. The Wealth Management division saw client assets reach $6.2 trillion by the end of 2024, a 21% increase from the prior year. As of February 15, 2025, Morgan Stanley's stock price is $138.95.

Latest Morgan Stanley Earnings Comparison (Q4 2024)

Historical Morgan Stanley Earnings Data

Morgan Stanley Earnings Call Summary Q4 2024

Highlights

• Record Revenue & EPS: Q4 revenue reached $16.2B (+8% YoY), with EPS of $2.22, the highest in over 15 years.

• Strong Full-Year Performance: 2024 revenue totaled $61.8B, with EPS of $7.95 and a return on tangible equity (ROTCE) of 18.8%.

• Institutional Securities Strength: Institutional revenue was $7.3B in Q4, led by record equities trading ($12.2B for the full year) and strong fixed income ($8.4B for FY24).

• Investment Banking Rebound: Q4 investment banking revenue was $1.6B, with equity underwriting and M&A advisory showing strong momentum.

• Wealth Management Growth: Record $28.4B in full-year revenue with fee-based flows of $123B, and total client assets reaching $7.9T.

• Deposit & Lending Expansion: Total deposits grew 3% QoQ to $370B, while lending balances hit $160B, supported by strong securities-based lending.

• Capital Strength & Shareholder Returns: CET1 capital grew $5.5B in 2024, with $3.3B in stock buybacks and continued dividend growth.

Risks

Despite strong performance, Morgan Stanley faces several challenges:

1. Geopolitical & Macroeconomic Uncertainty: Increased geopolitical risks and global economic uncertainty could impact M&A and capital markets activity.

2. Regulatory Compliance & AML/BSA Standards: Strengthening AML/BSA compliance frameworks is critical to maintaining growth in international wealth management.

3. Capital Market Sensitivity: Investment banking and trading revenues remain dependent on market conditions, making results vulnerable to economic slowdowns.

4. Wealth Management Competition: The 5-7% organic growth target remains challenging, given slower monetization events in stock plans and client asset transitions.

5. Banking Integration & Deposit Growth: While progress is being made in banking capabilities, further investments are needed to expand deposit offerings and lending penetration.

Opportunities

Morgan Stanley is positioned for long-term expansion across multiple areas:

1. M&A Pipeline at 7-Year High: A strong M&A backlog, particularly in corporate carve-outs and sponsor exits, signals a major recovery in advisory revenues.

2. Wealth Management Scaling Toward $10T AUM: With $250B+ in net new assets annually, Morgan Stanley remains on track to surpass $10T in client assets.

3. Banking Expansion & Deposit Growth: Increasing checking accounts, workplace banking, and securities-based lending will drive further banking integration.

4. Equities & Fixed Income Market Share Gains: Equities revenue hit a record $12.2B in FY24, and fixed income revenue of $8.4B highlights growing client engagement.

5. Integrated Firm Strategy Unlocking Synergies: The partnership with Carta strengthens Morgan Stanley’s IPO and stock plan pipeline, reinforcing its Wealth + Institutional strategy.

Outlook

• Investment Banking Rebound Expected: Strong M&A pipelines and IPO recovery should drive continued advisory and underwriting growth in 2025.

• Durable Wealth Management Growth: Fee-based flows of $123B in 2024 and continued workplace integrations signal sustained long-term expansion.

• Capital Efficiency & Shareholder Returns: With CET1 at 15.9%, Morgan Stanley is positioned for further capital returns and disciplined expense management.

• Deposit & Lending Growth to Continue: Loans up 15% YoY, with a focus on expanding securities-based lending and institutional banking solutions.

The information is provided for educational purposes only and does not constitute financial advice or recommendation and should not be considered as such. Do your own research.