01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
Morgan Stanley's (MS) 2024 10-K filing reveals a robust financial performance, with net revenues reaching $61.8 billiona and net income at $13.4 billion, marking a significant 47% increase from the prior year.
The firm demonstrated strong profitability with a Return on Equity (ROE) of 14.0%b and a Return on Tangible Common Equity (ROTCE) of 18.8%. Key drivers for this success include improved client activity and market conditions, leading to a 22% increase in Institutional Securities net revenues and an 8% increase in Wealth Management net revenues. The firm also maintained a solid capital position, with a Common Equity Tier 1 capital ratio of 15.9% under the standardized approach, reflecting effective capital management while supporting clients and returning capital to shareholders.
Despite a generally positive economic environment, the report highlights ongoing risks such as market volatility, geopolitical instability, and evolving regulatory landscapes. The firm's expense efficiency ratio improved to 71%c, demonstrating disciplined cost management alongside revenue growth.
Management has proactively addressed integration-related expenses and workforce adjustments, which were substantially completed in prior years, allowing for a cleaner operational focus. The firm's strategic focus on client-centricity and operational resilience appears to be paying off, positioning it to navigate potential future market challenges.
02—Key points
Key Highlights
- Net revenues increased by 14% to $61.8 billion in 2024.
- Net income applicable to Morgan Stanley common shareholders increased by 47% to $13.4 billion in 2024.
- Diluted earnings per common share rose by 53% to $7.95 in 2024.
- Return on Equity (ROE) improved to 14.0% and Return on Tangible Common Equity (ROTCE) to 18.8% in 2024.
- Common Equity Tier 1 capital ratio (standardized) stood strong at 15.9% at year-end 2024.
- Institutional Securities net revenues grew 22% to $28.1 billion, driven by higher client activity and improved market conditions.
- Wealth Management net revenues increased 8% to $28.4 billion, supported by higher asset management and transactional revenues.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Net Income | $13.39B$9.09B | +47.4% |
| EPS (Basic) | $8.04$5.24 | +53.4% |
| EPS (Diluted) | $7.95$5.18 | +53.5% |
| Shares Outstanding (Basic) | 1.59B1.63B | −2.3% |
| Shares Outstanding (Diluted) | 1.61B1.65B | −2.1% |
05—Questions
Frequently Asked Questions
What was Morgan Stanley's overall financial performance in 2024?
Morgan Stanley reported strong financial results for 2024, with net revenues of $61.8 billion and net income of $13.4 billion, a 47% increase from 2023. This growth was driven by improved performance across its business segments, particularly Institutional Securities and Wealth Management, and reflected in a higher ROE of 14.0% and ROTCE of 18.8%.
How did Morgan Stanley's business segments perform in 2024?
The Institutional Securities segment saw a significant 22% increase in net revenues to $28.1 billion, benefiting from higher client activity and better market conditions. The Wealth Management segment also performed well, with an 8% increase in net revenues to $28.4 billion, driven by growth in asset management and transactional revenues. The Investment Management segment reported a 9% increase in net revenues to $5.9 billion, primarily due to higher average Assets Under Management (AUM).
What is Morgan Stanley's capital position and how is it managing capital?
Morgan Stanley maintained a strong capital position, with its Common Equity Tier 1 (CET1) capital ratio at 15.9% under the standardized approach as of December 31, 2024. The firm continued to support clients and return capital to shareholders, evidenced by $5.6 billion in CET1 capital accretion and active share repurchases. The firm's capital plan, subject to Federal Reserve approval, outlines planned capital actions, including dividends and share repurchases, while ensuring compliance with regulatory capital requirements.
What are the key risks identified in the 2024 10-K?
The filing highlights several key risks, including market risk stemming from volatile financial markets and economic conditions, credit risk related to borrower defaults, liquidity risk, operational risks such as cybersecurity threats, and legal, regulatory, and compliance risks. Geopolitical instability and evolving regulatory environments are also noted as ongoing risks.
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