Morgan Stanley's Earnings Soar Amid Dealmaking Surge

Morgan Stanley's profits soared in the fourth quarter, driven by increased dealmaking and stock sales. The investment bank benefited from a surge in mergers and acquisitions, supported by a robust U.S. economy and regulatory expectations under President Trump. Investment banking revenues rose significantly, reflecting broader Wall Street trends.

Morgan Stanley's profit surged in the fourth quarter on the back of robust dealmaking and stock sales, the investment bank reported. The boost in earnings came as Wall Street benefited from a wave of mergers and acquisitions that increased investment banking fees.

This financial uptick was fueled by a strong U.S. economy, interest-rate cuts, and regulatory expectations under the Trump administration. CEO Ted Pick noted the firm's focus on strategy, culture, financial strength, and growth, highlighting significant gains in investment banking and wealth management.

The bank's investment banking revenue climbed 25% to $1.64 billion, mirroring successes of competitors like Goldman Sachs and JPMorgan. With earnings reaching $3.7 billion in contrast to $1.5 billion the previous year, Morgan Stanley shares rose 1.1% pre-market trading. Investment banking revenues globally soared by 26% in 2024, with experts forecasting more major deals under Trump.

(With inputs from agencies.)