Morgan Stanley (MS) Q4 2024 earnings summary

Executive summary

• Achieved record fourth quarter revenues of $16.2 billion and full-year revenues of $61.8 billion, with EPS of $2.22 for Q4 and $7.95 for the year, marking the highest EPS in over 15 years.

• Return on tangible common equity (ROTCE) was 20.2% for Q4 and 18.8% for the year, with a firm-wide efficiency ratio of 71%.

• Net income for Q4 was $3.7 billion and for the full year $13.4 billion, with total client assets reaching $7.9 trillion.

• Wealth and Investment Management revenues grew from $20 billion to $34 billion over six years, with strong net new assets.

• Institutional Securities wallet share increased by nearly 100 basis points, with global revenue growth of roughly 20% across all regions.

Financial highlights

• Full-year Institutional Securities revenues were $28.1 billion, with record equity revenues of $12.2 billion and fixed income revenues of $8.4 billion.

• Wealth Management posted record revenues of $28.4 billion, pre-tax profit of $7.7 billion, and a margin of 27.2%.

• Investment Management annual revenues were $5.9 billion, with AUM peaking at $1.7 trillion and positive net flows.

• Net new assets in Wealth Management were $252 billion for the year, representing 5% annual growth.

• Book value per share at year-end was $58.98, tangible book value per share $44.57.

Outlook and guidance

• M&A pipelines are healthy and diversified, with expectations for a strong rebound in deal-making activity in 2025.

• First quarter 2025 net interest income is expected to remain stable compared to Q4 2024.

• The firm is focused on durable wallet share gains in Institutional Securities and aims for 20% returns through the cycle.

• 2025 tax rate is expected to be approximately 24%.

• Management emphasizes execution on strategy, culture, financial strength, and growth to create long-term shareholder value.