Morgan Stanley’s investment banking revenues rose 6 per cent in the fourth quarter, a more modest rise than some rivals enjoyed during a record deals boom on Wall Street.
In fourth-quarter earnings on Wednesday, Morgan Stanley posted investment banking revenues of around $2.6bn, up from $2.4bn a year earlier and in line with analysts’ forecasts, according to data compiled by FactSet.
By comparison, rivals Goldman Sachs and JPMorgan Chase saw fourth-quarter revenues in investment banking rise 45 per cent and 28 per cent, respectively.
Morgan Stanley’s stock was down 4.9 per cent in pre-market trading in New York.
Its investment banking revenue for the full year climbed 43 per cent. But fourth-quarter revenues from trading, which have benefited since early 2020 from a rise in market volatility, fell 26 year on year to $2.4bn, trailing analysts’ forecasts for $3.7bn. Trading revenue at Goldman also unexpectedly fell in the quarter.
Morgan Stanley reported total net income of $3.6bn, up from $3.3bn a year earlier and matching forecasts. The bank’s overall revenues were $14.5bn, up from $13.6bn a year earlier and just shy of the $14.6bn expected.
Year-on-year comparisons were flattered by the integration of the purchase of Eaton Vance which was completed in March 2021.
Revenues in wealth management, which contains ETrade, grew 10 per cent to $6.25bn from $5.7bn a year earlier. In investment management, revenue swelled 59 per cent to $1.7bn, bolstered by the integration of Eaton Vance.