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January 20, 2022

Morgan Stanley posts strong results in Q4 2021

Morgan Stanley has reported strong results in the fourth quarter of 2021 driven by robust performance in wealth and investment management units.

Key metrics

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.

Investment 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.

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