BofA, Morgan Stanley double 4Q 2024 profits
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The news: In day two of Big Bank 4Q earnings, Bank of America (BofA) and Morgan Stanley reported strong results, exceeding analysts' expectations and doubling their profits compared to the same period last year, driven by surging investment banking and trading revenues.
The numbers: BofA’s profit more than doubled to USD6.7 billion, compared to USD3.1 billion a year ago – or USD0.82 per share – driven by a 44% surge in investment banking fees and a 10% rise in trading revenue. Net interest income (NII) climbed 3% to USD14.4 billion.
Morgan Stanley’s profit also doubled to USD3.7 billion – or USD2.22 per share – from USD1.5 billion a year earlier, supported by record equities trading revenue (+51%) and a 25% increase in investment banking fees.
The context: Both banks highlighted robust market activity and client engagement following the US elections, as investors bet on a pro-business environment under the second Trump administration.
BofA’s loans and deposits grew, while Morgan Stanley reported big gains in wealth management, reaching USD7.9 trillion in client assets.
The results follow Wall Street peers Goldman Sachs, JPMorgan, Citi, Wells Fargo and BNY that a day earlier also reported better-than-expected earnings with higher revenues, buoyed by dealmaking recovery and favourable market conditions.
What they said: Morgan Stanley CEO Ted Pick said the 4Q 2024 result capped “one of the strongest years in the firm’s history.”
CFO Sharon Yeshaya said: "We are seeing most factors that were limiting deals, such as regulatory challenges, high interest rates and a closed IPO market, changing."
The sources: Bank of America release , Morgan Stanley release
