Morgan Stanley (MS) Q4 2024 earnings

Morgan Stanley Thursday topped expectations for fourth-quarter earnings and revenue as the company’s stock and fixed income traders beat expectations.

This is what the company reported:

• Earnings: $2.22 per share vs. $1.70 LSEG estimate
• Revenue: $16.22 billion, versus an estimate of $15.03 billion

The bank said quarterly profit more than doubled to $3.71 billion, or $2.22 per share, from a year earlier, when there were still some regulatory charges.

Revenue rose 26% to $16.22 billion as results improved across the bank’s major businesses.

It was the company’s stock trading business that shined brightest in the quarter, with revenue up 51% to $3.3 billion, or nearly $650 million more than the StreetAccount estimate. Morgan Stanley cited increased client activity and strength in its prime brokerage business that focuses on hedge funds.

The company’s fixed income business saw revenue rise 35% to $1.93 billion, about $250 million above the StreetAccount estimate, due to increased activity in the credit and commodities markets.

Investment banking revenue rose 25% to $1.64 billion, essentially in line with StreetAccount’s estimate, due to rising performance in the advisory and equity capital markets.

Wealth management saw revenue rise 13% to $7.48 billion on rising asset levels and higher fees, beating estimates by $120 million.

While bank stocks were supported by enthusiasm over expectations for rising transaction activity, it was actually the trading side that helped Morgan Stanley and the rival banks Goldman Sachs more in the quarter. Traders at both companies benefited from increased activity in the run-up to and after the US elections in November.

On Wednesday, JPMorgan ChaseGoldman and Citi Group each exceeded expectations, helped by better-than-expected commercial or investment banking revenues.

This story is developing. Check back later for updates.