Morgan Stanley caps 2024 with record results and $7.9 Trillion client assets

ByInvestment Club

Overview

On January 16th, Morgan Stanley delivered strong results in Q4 2024, achieving net revenues of $16.2bn and earnings per diluted share (EPS) of $2.22, reflecting a robust 20.2% ROTCE. For the full year, the firm reported record net revenues of $61.8bn and a net income of $13.4bn, with an EPS of $7.95 and a ROTCE of 18.8%.

Chairman and CEO Ted Pick highlighted the firm’s strong execution across markets, investment banking, and wealth management, contributing to total client assets of $7.9tn and positioning Morgan Stanley for long-term shareholder value creation.

Full-Year 2024 performance:

Revenues and earnings

  • Full-year net revenues reached $61.8bn (+14% YoY).
  • Net income for 2024 was $13.4bn (+47% YoY).

Segment highlights

  • Institutional Securities achieved net revenues of $28.1bn (+22% vs. 2023), driven by strength in Equity and Fixed Income.
  • Wealth Management generated $28.4bn in revenues (+8% YoY), with net new assets of $251.7bn.
  • Investment Management revenues grew to $5.9bn (+9% YoY), supported by strong assets under management (AUM) growth.

Q4 2024 Results:

Profitability

  • Net revenues of $16.2bn (+26% YoY).
  • Net income rose to $3.7bn (+145% vs. 2023)
  • Earnings per diluted share (EPS) increased to $2.22, compared to $0.85 in Q4 2023.

Return metrics

  • Return on Tangible Common Equity (ROTCE) reached 20.2%, a significant improvement from 8.4% YoY.
  • Expense efficiency ratio improved to 69%, down from 84% YoY, reflecting stronger revenue generation and cost discipline.

Institutional Securities

  • Net revenues rose to $7.3bn (+47% vs. Q4 2023), driven by strong client activity and improved market conditions.
  • Investment Banking revenue grew $1.6bn (+25% vs. 2023), supported by increased M&A activity and equity underwriting.
  • Equity net revenues surged by 51% YoY, with notable strength in Prime Brokerage and Asian markets.

Wealth Management

  • Net revenues reached a record $7.5bn (+13% vs. 2023), supported by higher asset management fees and transactional revenues.
  • Fee-based client assets increased to $2.35tn (+19% vs. 2023), reflecting positive net flows and market performance.
  • Pre-tax margin improved to 27.5%, compared to 22.5% YoY.

Investment Management

  • Net revenues grew to $1.6bn (+12% vs. 2023), driven by higher average AUM and performance-based income.
  • Total AUM reached $1.67tn (+14% YoY).

Author: Andreea-Roxana Danci

Similar Posts