Morgan Stanley reported earnings, and the shares got a boost as the Bank posted better results than what was expected out of it!
Profit was up by 9% to $3.7B, $2 per share. Analysts were expecting around 10 cents less. However, the revenue was reported to be less, about $14.5B.
What was the driver of its growth?
Well, Deal-making, with advisory revenue climbing to 6% and 43% for the entire year. Likewise, Morgan Stanley saw its trading divisions decline as the markets were less volatile. Fixed-income trading was down by 31%, while equities revenue climbed 13%.
The Wealth Management group reported a $6.3B in revenue compared to $5.7B in the year-ago quarter. The Bank acquired Eaton Vance and saw its Investment Management division surge by 59%!
“2021 was an outstanding year for our Firm…with stand-out results in each of our business segments,” Morgan Stanley chief executive James Gorman said. “We have a sustainable business model with scale, capital flexibility, momentum and growth.”
Bank of America likewise posted good signs, unlike the banks before. Profits were by 28%, which is $7B or 82 cents a share. The revenue fell short of expectations at $22.1B. The Bank had higher expenses in the 4Q due to higher compensation costs. Revenue grew faster hence the positive outcome.
Lending was up as the loan balance grew 6% to $979B. Deposits were high by 15%.
“Our fourth-quarter results were driven by strong organic growth, record levels of digital engagement, and an improving economy,” Bank of America Chief Executive Brian Moynihan said in a statement. “We grew loans by $51 billion and added $100 billion of deposits during the quarter, further strengthening our position as the leader in retail deposits.”
It had a slight decline of 2% in trading revenue.