Revenue at Morgan Stanley’s investment bank rose 6% in the fourth quarter, a more modest rise than some rivals enjoyed during a record boom in Wall Street deals.
In its fourth quarter results on Wednesday, Morgan Stanley reported investment banking revenue of about $2.6 billion, up from $2.4 billion 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 revenue in investment banking rise 45% and 28%, respectively.
Shares of Morgan Stanley were down 4.9% in premarket trading in New York.
Its investment banking revenue for the full year soared 43%. But fourth-quarter trading revenue, which has benefited since early 2020 from higher market volatility, fell 26 yr-on-y to $2.4 billion, lagging analyst forecasts by 3. $7 billion. Goldman’s trading revenue also unexpectedly fell in the quarter.
Morgan Stanley reported total net income of $3.6 billion, down from $3.3 billion a year earlier and corresponding guidance. The bank’s overall revenue was $14.5 billion, down from $13.6 billion a year earlier and slightly below the expected $14.6 billion.
Year-over-year comparisons were flattered by the integration of the purchase of Eaton Vance which was completed in March 2021.
Wealth management revenue, which includes ETrade, rose 10% to $6.25 billion from $5.7 billion a year earlier. In investment management, revenue rose 59% to $1.7 billion, supported by the integration of Eaton Vance.