Morgan Stanley (MS) Q4 2024 earnings summary

Executive summary

• Achieved record net revenues of $61.8B for 2024, with Q4 revenues of $16.2B and EPS of $7.95, marking the highest EPS in over 15 years.

• Net income applicable to common shareholders rose 50% to $12.8B for 2024, with full-year net income at $13.4B.

• Return on tangible common equity (ROTCE) was 20.2% for Q4 and 18.8% for the year; return on equity reached 15.2% for 2024.

• Wealth and Investment Management revenues grew to $34B over six years, with total client assets reaching $7.9T.

• Focused on an integrated firm strategy leveraging strategy, culture, financial strength, and growth.

Financial highlights

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

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

• Investment Management annual revenues were $5.9B, with AUM peaking at $1.7T.

• Book value per common share increased to $58.98 at year-end 2024.

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

Outlook and guidance

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

• Targeting $10T+ in client assets, 30% pre-tax margin in Wealth Management, and durable share gains.

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

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

• Emphasizing scalable, integrated client coverage and risk management to support future growth.