Morgan Stanley (NYSE:MS) shares rose 4% after the firm delivered strong fourth quarter earnings that exceeded Wall Street expectations on both revenue and earnings per share (EPS).
The bank posted net revenues of $17.89 billion, surpassing the consensus estimate of $17.66 billion, marking 10.3% year-over-year growth driven by strength in wealth management.
Adjusted EPS came in at $4.4 billion or $2.68, beating the $2.45 analyst estimate. This was up from $3.7 billion or $2.22 billion per share for the year-ago quarter.
Full-year results showed net revenues of $70.6 billion and EPS of $10.21, up from $61.8 billion and $7.95 a year earlier.
Morgan Stanley reported strong performance across its business segments, with Institutional Securities benefiting from robust equity and investment banking activity, and Wealth Management adding $356 billion in net new assets.
“Our performance reflects multi-year investments which have contributed to growth and momentum across the Integrated Firm,” Morgan Stanley CEO Ted Pick said in a statement.
“Total client assets in Wealth and Investment Management grew to $9.3 trillion, supported by over $350 billion in net new assets. Our Institutional Securities business served as a trusted advisor to clients as investment banking activity accelerated and global markets remained strong.”
The bank also reported a return on tangible common equity of 21.8% and an expense efficiency ratio of 68%, highlighting operational leverage while continuing to invest in the business.