Investment banking company Morgan Stanley surpassed analyst expectations in the fourth quarter (Q4), fuelled by a surge in investment banking revenue and debt underwriting fees nearly doubling.
For the fourth quarter, net revenues reached US$17.9 billion, compared to $16.2 billion one year ago. This exceeded analysts' expectations of $17.77 billion.
This was propelled by investment banking growing 47% to $2.42 billion, from $1.64 billion a year earlier.
“Our performance reflects multi-year investments which have contributed to growth and momentum across the Integrated Firm,” Morgan Stanley chairman and CEO Ted Pick said.
Net income came in at $4.4 billion or $2.68 per share, up from $3.7 billion or $2.22 per share the same time last year.
Analysts expected earnings per share of $2.44.
Morgan Stanley’s stock jumped around 6% on Thursday (Friday AEDT) following the report.
The wealth management unit posted $8.4 billion in net revenue in the most recent quarter, up from $7.5 billion a year earlier. For the full year, the division generated a record $31.8 billion in net revenue.
In the full year revenue rose to $70.6 billion compared to $61.8 billion a year ago.
Net income jumped to $16.9 billion or $10.21 per share from $13.4 billion or $7.95 in the previous fiscal year.
The firm bought back $1.5 billion of its stock during Q4 and $4.6 billion for the full year under its share repurchase program.
At time of writing, Morgan Stanley (NYSE: MS) stocks had risen 5.78% to US$191.23. The company’s market capitalisation was $303.92 billion.
The company’s shares rose 47.43% for the full year. This outpaces the benchmark S&P 500 but lags behind rival Goldman Sachs, which saw its stock price grow by 63.19% for the year.
