Morgan Stanley is celebrating its strong fourth-quarter and full-year financial revenue results today.
The firm reported a net revenue of $16.2 billion for the fourth quarter, reflecting a 26% increase from $12.9 billion in 2023. For the full year, net revenues reached $61.8 billion, a $7 billion jump from $54.1 billion reported a year earlier.
Today, Ted Pick, Chairman and CEO of Morgan Stanley told investors; “An excellent fourth quarter with a 20% ROTCE followed three quarters of consistent execution for Morgan Stanley, capping off one of the strongest years in the Firm’s history. The Firm produced full year revenues of $61.8 billion, EPS of $7.95 and a ROTCE of 18.8%. Institutional Securities saw strength across markets and continued improvement in Investment Banking. Total client assets grew to $7.9 trillion across Wealth and Investment Management supported by markets and healthy net new assets.”
According to Morgan Stanley, the firm’s other full-year highlights included:
· Expense efficiency ratio was 71% compared to 77% a year ago, reflecting stronger revenues and expense discipline. The prior year was also negatively impacted by certain expense items.
· Institutional Securities reported net revenues of $28.1 billion reflecting higher results across business lines and regions on strong client activity and improved market conditions
· Wealth Management delivered net revenues of $28.4 billion, reflecting strong asset management and transactional revenues. The pre-tax margin for the year was 27.2%. The business added feebased flows of $123 billion and net new assets of $252 billion representing a full year 5% annualized growth rate from beginning period assets.
· Investment Management reported net revenues of $5.9 billion driven by asset management revenues on higher average AUM. The year included long-term net inflows of $18 billion.
Pick says the firm “are executing against four pillars – strategy, culture, financial strength and growth – that support our Integrated Firm, creating long-term value for our shareholders.”
Morgan Stanley is projected to continue experiencing significant revenue growth in fiscal year 2025.
By CEO NA Editorial Staff
