Morgan Stanley headquarters in New York City on January 17, 2023.
Michael M. Santiago | Getty Images
Morgan Stanley on Tuesday reported fourth-quarter revenue that beat expectations, helped by strong investment banking.
Here’s how the bank’s performance compares to Wall Street expectations:
- Earnings per share: 85 cents, may not compare to $1.01 expected, according to LSEG
- Revenue: $12.9 billion versus $12.7 billion expected, according to LSEG
Morgan Stanley shares rose as much as 2% in premarket trading after the results.
Morgan Stanley said its investment banking revenue rose 5% from a year ago on the back of a 25% increase in fixed-income underwriting revenue amid a rise in investment-grade issuances.
However, the bank’s results were affected by a one-time regulatory charge. There were $286 million in fees related to a special assessment of the Federal Deposit Insurance Corporation and $249 million in legal fees to settle a criminal investigation and a related SEC investigation into unauthorized disclosure of block trades.
This is the first earnings report under new CEO Ted Beck, who succeeded James Gorman as CEO at the beginning of 2024. Beck is a Morgan Stanley veteran who rose through the ranks to lead the bank’s Wall Street operations.
“In 2023, the company reported a strong return on average tangible equity against the backdrop of a mixed market and a number of headwinds,” Beck said in a statement. “We begin 2024 with a clear and consistent business strategy and a unified leadership team. We are focused on achieving our long-term financial goals and continuing to deliver for shareholders.”
Shares of the New York-based bank fell about 4% in 2024 after a 10% gain last year.
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