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 18.8% for the year and 20.2% for Q4, with a firm-wide efficiency ratio of 71.1%.

• Net income for the year was $13.4 billion, with total client assets growing to $7.9 trillion, supported by strong markets and healthy net new assets.

• The firm’s integrated strategy, culture, financial strength, and growth pillars drove durable earnings and positioned the business for long-term success.

Financial highlights

• Institutional Securities delivered $28.1 billion in annual revenues, with record equity revenues and strong fixed income performance.

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

• Investment Management reported $5.9 billion in annual revenues and AUM reached $1.7 trillion.

• 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 at their highest in seven years, with expectations for increased deal-making as market and economic conditions remain constructive.

• Fee-based flows and net new assets are expected to continue driving durable growth in Wealth Management.

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

• The firm remains focused on disciplined execution, ongoing investments in technology, and expanding client relationships.

• Forward-looking statements caution risks and uncertainties may impact future results.