Morgan Stanley (NYSE:MS) stock rose 0.33% (As on January 17, 11:20:55 AM UTC-4, Source: Google Finance) after the company’s profit increased in the fourth quarter, fueled by a wave of dealmaking and stock sale by the investment bank. Wall Street banks benefited from a surge in mergers and acquisitions in the fourth quarter that boosted investment banking fees. Dealmaking was also propelled by a strong US economy, interest-rate cuts and expectations of lighter regulation under incoming US President Donald Trump. Net income applicable to Morgan Stanley was $3.7 billion, compared with $1.5 billion for the same period a year ago.

Moreover, Institutional Securities reported net revenues for the current quarter of $7.3 billion compared with $4.9 billion a year ago. Pre-tax income was $2.4 billion compared with $408 million a year ago. Investment Banking revenues up 25%. Advisory revenues increased on higher completed M&A transactions. Equity underwriting revenues increased from a year ago driven by higher follow-ons and IPOs as clients strategically raised capital in a more constructive environment. Fixed income underwriting revenues were essentially unchanged from the prior year quarter as higher noninvestment grade issuances offset lower investment grade issuances. Equity net revenues up 51%, driven by increased client activity, with notable strength in Prime Brokerage and regional strength in Asia. Fixed Income net revenues up 35%, reflects strong results in credit on higher lending and securitization activity and higher structured revenues in commodities. Wealth Management reported net revenues of $7.5 billion in the current quarter compared with $6.6 billion a year ago. Pre-tax income of $2.1 billion in the current quarter resulted in a pre-tax margin of 27.5%. Asset management revenues were a record on higher asset levels and the cumulative impact of positive fee-based flows. Transactional revenues increased 18% excluding the impact of mark-to-market on investments associated with DCP. Investment Management reported net revenues of $1.6 billion compared with $1.5 billion a year ago. Pre-tax income was $414 million compared with $265 million a year ago.

MS in the fourth quarter of FY 24 has reported the adjusted earnings per share of $2.22, beating the analysts’ estimates for the adjusted earnings per share of $1.68, according to estimates compiled by LSEG. The company had reported the adjusted revenue of $16.22 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $15.03 billion.

Additionally, MS has declared a $0.925 quarterly dividend per share, payable on February 14, 2025 to common shareholders of record on January 31, 2025.