May 20, 2022
Morgan Stanley bank

Morgan Stanley’s earnings jumped by 51% in the closing three months of 2021, following the trend of strong results across Wall Street and sending profits at the New York-based firm to a record annual high.

The U.S. bank reported a profit of $3.39 billion, or $1.81 a share, whilst revenue jumped by 26% to $13.64 billion. Both figures are well in excess of analyst predictions of $1.30 per-share earnings on revenue of $11.58 billion.

“The firm produced a very strong quarter and record full-year results, with excellent performance across all three businesses and geographies,” said Morgan Stanley CEO James Gorman, speaking about the results. “Our unique business model continues to serve us well as we further execute on our long-term strategy with the acquisitions of E*TRADE and Eaton Vance.”

Morgan Stanley’s earnings are in line with other big banks, which continued to benefit from a recovery on Wall Street driven by government stimulus measures. Rival bank Goldman Sachs Group Inc. reported a 100% increase in fourth-quarter profits on Tuesday.

Morgan Stanley is less exposed to negative impacts from the pandemic, such as mass unemployment and small-business closures, due to its focus on high-value individuals and entities. The results clear the way for the bank to buy back approximately $2bn of its shares in the first quarter, following the relaxation of rules announced by the Federal Reserve last month.