Morgan Stanley has reported strong results in the fourth quarter of 2021 driven by robust performance in wealth and investment management units.
Key metrics
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The investment bank’s net income in the quarter totalled $3.7bn, up nearly 9% compared to $3.4bn recorded in the same period a year ago.
Net revenues increased to $14.5bn in Q4 2021, versus $13.6bn in the same quarter of 2020.
Morgan Stanley’s wealth management reported net revenues of $6.3bn in the three-month period that ended on 31 December 2021. The figure represented a 10.5% increase from $5.7bn recorded in the prior year quarter.
The increase was driven by a surge in asset management revenues due to market appreciation and strong positive fee-based flows. The division’s net interest income also increased due to growth in bank lending and higher brokerage sweep deposits.
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By GlobalDataInvestment management posted net quarterly revenues of $1.8bn, up from $1.1bn registered in the prior year period.
However, the bank’s Institutional Securities, which includes investment banking, reported a 4.3% drop in net revenues to $6.7bn as earnings from equity underwriting fell in the quarter.
Full year results
The bank’s full year net revenues totalled $59.8bn, jumping from $48.8bn recorded a year ago.
Net income also soared from $11bn to $15bn on a year-on-year basis.
Morgan Stanley chairman and CEO James P. Gorman said: “2021 was an outstanding year for our Firm. We delivered record net revenues of $60bn and a ROTCE of 20%, with stand-out results in each of our business segments.
“Wealth Management grew client assets by nearly $1trn to $4.9trn this year, with $438bn in net new assets. Combined with Investment Management, we now have $6.5trn in client assets.
“Our integrated investment bank has continued to gain wallet share. We have a sustainable business model with scale, capital flexibility, momentum and growth.”
Last month, Morgan Stanley joined forces with The Zone to promote financial wellness for athletes.
