Morgan Stanley’s institutional securities group, which houses its investment banking and trading businesses, reported revenue of $7.3 billion in the fourth quarter, a 49% jump from $4.9 billion a year earlier.
Income before tax for the institutional securities group—one of the investment bank’s three business lines, alongside wealth management and investment management—was $2.4 billion for the fourth quarter. That’s up from $408 million the year prior.
Morgan Stanley’s revenue from investment banking alone rose 25%. Within that, revenue from advisory, equity underwriting, and fixed-income underwriting all increased from a year earlier. Advisory work increased on higher completed mergers and acquisitions, the bank noted, while equity underwriting jumped thanks to drivers including more initial public offerings.
Clients are raising capital “in a more constructive environment,” the company said. Revenue from stock and fixed-income trading jumped 51% and 35%, respectively, from a year ago. Investors closed out a strong year in 2024 after trading activity surged following the U.S. presidential election.