Morgan Stanley(MS) - 2024 Q4 - Annual Results

Financial Performance - Net revenues for Q4 2024 reached $16,223 million, a 5$3,714 million, a 16% increase from Q3 2024 and 145% increase from Q4 2023[3] - Earnings per diluted share for Q4 2024 were $2.22, an 18$16,223 million, a 5% increase from $15,383 million in Q3 2024 and a 26$12,896 million in Q4 2023[8] - Net income applicable to Morgan Stanley for Q4 2024 was $1,891 million, a 32$1,436 million in Q3 2024 and a 93% increase from $304 million in Q4 2023[12] - The pre-tax margin for Wealth Management was 27$11,202 million, compared to $11,083 million in Q3 2024 and$10,797 million in Q4 2023, with total non-interest expenses year-to-date at $43,901 million[36] Revenue Breakdown - Institutional Securities net revenues were$7,267 million, up 7% from Q3 2024 and 47% from Q4 2023[3] - Wealth Management net revenues increased to $7,478 million, a 3$1,643 million, reflecting a 13% increase from Q3 2024 and 12% from Q4 2023[3] - Investment banking revenues for Q4 2024 reached $1,641 million, a 12$1,463 million in Q3 2024 and a 25% increase from $1,318 million in Q4 2023[12] - Wealth Management net revenues for Q4 2024 were$7,478 million, a 3% increase from Q3 2024 and a 13% increase from Q4 2023[14] - Adjusted net revenues (non-GAAP) for Q4 2024 were $7,504 million, compared to$6,403 million in Q4 2023, reflecting a 17.3% increase[42] Asset and Capital Management - The firm’s total assets as of December 31, 2024, were reported at $1,000 billion, reflecting a strategic focus on asset growth and management[3] - Total assets decreased by 3$1,258,027 million in Q3 2024 to $1,215,071 million in Q4 2024, but increased by 2$1,193,693 million in Q4 2023[8] - The Common Equity Tier 1 capital ratio improved to 15.9% in Q4 2024 from 15.1% in Q3 2024 and 15.2% in Q4 2023[10] - The Tier 1 capital ratio was 17.9% in Q4 2024, up from 17.1% in Q3 2024 and consistent with 17.1% in Q4 2023[10] - The allowance for credit losses (ACL) for loans and lending commitments at the end of Q4 2024 was $1,722 million, down from$1,723 million at the end of Q3 2024[46] Loans and Deposits - Loans increased by 3% from $239,760 million in Q3 2024 to$246,814 million in Q4 2024, and by 9% compared to $226,828 million in Q4 2023[8] - Deposits rose by 3$363,722 million in Q3 2024 to $376,007 million in Q4 2024, and by 7$351,804 million in Q4 2023[8] - Consolidated Loans totaled $422.8 billion, a 3$409.6 billion in the previous quarter and a 12% increase from $376.3 billion year-over-year[23] - Wealth Management Loans increased to$159.5 billion, up 3% from $155.3 billion in the previous quarter and up 9$146.5 billion year-over-year[23] Client Assets and Flows - Total client assets in Wealth Management reached $6,194 billion, reflecting a 4$56.5 billion, down 12% from Q3 2024 but up 19% from Q4 2023[17] - Total Net Flows reached $71.1 billion, a significant increase from$16.6 billion in the previous quarter, while year-over-year flows improved from $7.5 billion[21] - Long-Term Net Flows were$4.3 billion, down 41% from $7.3 billion in the previous quarter, and down from$18.0 billion year-over-year[21] Expenses and Compensation - Compensation expenses for Q4 2024 were $6,197 million, a decrease from$6,457 million in Q3 2024 and an increase from $5,597 million in Q4 2023[4] - Compensation and benefits for Q4 2024 amounted to$6,289 million, a decrease from $6,733 million in Q3 2024 and an increase from$5,951 million in Q4 2023[36] - Total non-interest expenses for Wealth Management were $5,388 million in Q4 2024, a 4% increase from Q3 2024 and a 3% increase from Q4 2023[14] Performance Metrics - Return on average common equity improved to 15.2% in Q4 2024, compared to 13.1% in Q3 2024 and 6.2% in Q4 2023[6] - The return on average common equity for Q4 2024 was 16%, up from 12% in Q3 2024 and 2% in Q4 2023[12] - Return on Average Common Equity for Wealth Management was 20% for the year ended December 31, 2024, compared to 17% for the previous year[14] Risk and Regulatory Compliance - The firm continues to evaluate its Required Capital framework in light of evolving regulatory requirements to ensure adequate capital is maintained[30] - The average liquidity resources for the three months ended December 31, 2024, were actively managed considering various components including unsecured debt maturity profile and regulatory requirements[30] - The firm’s risk-based capital ratios are computed under standardized and advanced approaches for calculating credit risk and market risk risk-weighted assets[30]