Morgan Stanley's earnings top Wall Street expectations, helped by record wealth management revenue

Morgan Stanley's earnings top Wall Street expectations, helped by record wealth management revenue


A screen displays the trading information for Morgan Stanley on the floor of the New York Stock Exchange (NYSE), January 19, 2022.

Brendan McDermid | Reuters

Morgan Stanley reported fourth-quarter earnings on Tuesday that exceeded Wall Street expectations, boosted by the bank’s record revenues from wealth management.

Here’s what the bank did:

  • Earnings: $1.31 a share, adjusted
  • Revenue: $12.75 billion, versus $12.64 billion, according to Refinitiv

The bank’s wealth management reported record net revenues of $24.4 billion, compared with $24.2 billion in the prior year. The result was helped by an increase in net interest income on higher interest rates and bank lending growth, the bank said.

Morgan Stanley’s investment banking, trading and investment management operations were impacted by the extreme volatility last quarter. Wall Street banks are grappling with the collapse in IPOs and debt and equity issuance amid the market turmoil driven by the Federal Reserve’s aggressive rate hikes.

The New York-based firm cut about 2% of its staff in December, which impacted about 1,600 of the company’s 81,567 employees and touched nearly every corner of the global investment bank.

Shares of Morgan Stanley have climbed nearly 8% year to date following a 13% pullback last year.

This is breaking news. Please check back for updates.



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