In This Article:
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Quarterly Revenue: $16.2 billion for Q4 2024.
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Annual Revenue: $61.8 billion for 2024.
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Earnings Per Share (EPS): $2.22 for Q4 2024; $7.95 for the full year 2024.
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Return on Tangible Common Equity (ROTCE): 20.2% for Q4 2024; 18.8% for the full year 2024.
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Efficiency Ratio: 71.1% for the full year 2024.
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Institutional Securities Revenue: $28.1 billion for 2024.
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Wealth Management Revenue: $28.4 billion for 2024.
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Investment Management Revenue: $5.9 billion for 2024.
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Total Client Assets: $7.9 trillion at the end of 2024.
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Net New Assets: $252 billion for 2024.
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Fee-Based Flows: $123 billion for 2024.
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Common Equity Tier 1 (CET1) Capital Accretion: Over $5.5 billion in 2024.
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Common Stock Buyback: $3.3 billion for 2024.
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Tax Rate: 23.1% for the full year 2024.
Release Date: January 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Morgan Stanley (NYSE:MS) achieved record fourth-quarter revenues of $16.2 billion, marking the highest earnings per share in over 15 years.
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The firm delivered a return on tangible equity of 19% for the full year, reflecting strong financial performance.
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Morgan Stanley (NYSE:MS) reported significant growth in Wealth and Investment Management, with combined revenues increasing from $20 billion to $34 billion over six years.
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The Institutional Securities segment saw broad-based revenue growth of approximately 20% across all major regions in 2024.
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Morgan Stanley (NYSE:MS) continues to invest in strategic growth areas, including E*TRADE, Parametric, and technology infrastructure, supporting long-term expansion.
Negative Points
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Morgan Stanley (NYSE:MS) faces ongoing geopolitical and macroeconomic uncertainties, which could impact future performance.
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The firm is not yet fully integrated in terms of its banking and wealth management operations, indicating room for improvement.
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Morgan Stanley (NYSE:MS) has experienced challenges in achieving its 5% to 7% organic growth target in Wealth Management over the past three years.
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The firm is still working on aligning its systems with regulatory compliance standards, particularly in areas like AML and BSA.
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Morgan Stanley (NYSE:MS) acknowledges potential risks related to interest rate changes and geopolitical tensions, which could affect its business environment.
Q & A Highlights
Q: Can you discuss the factors contributing to Morgan Stanley's strong trading performance and how you differentiate between a favorable trading environment and durable client gains? A: Edward Pick, CEO, explained that Morgan Stanley's focus on institutional securities and the integrated investment bank strategy has been key. The firm has mobilized talent across divisions and regions, enhancing client relationships and market access. The current environment, with real corporate finance activity and interest rates, allows Morgan Stanley to leverage its strengths in equities and fixed income. The firm aims for durable share gains without taking undue risks, evidenced by a 100-basis-point gain in investment banking wallet share.