New York, Jan 15, 2026, 08:24 (EST)
- Net income for Q4 jumped to $4.4 billion, or $2.68 per share, while revenue hit $17.9 billion
- Investment banking revenue surged 47%, fueled by debt underwriting fees that nearly doubled
- Wealth management revenue climbed 13%, attracting $122.3 billion in net new assets
Morgan Stanley’s profit for the fourth quarter climbed, driven by a surge in investment banking fees and steady inflows in wealth management. The news lifted its shares in premarket trading. (Reuters)
Investors are now weighing if the late-2025 pickup in dealmaking and capital markets activity is solidifying for 2026. Bank earnings this week have served as a key gauge of risk appetite — both in boardrooms and across markets — following a turbulent year for rates and valuations. https://www.cnbc.com/2026/01/15/morgan-stanley-ms-q4-2025-earnings.html
Morgan Stanley occupies a tricky middle ground in that debate. It relies on wealth management to provide steady fee income, yet its investment banking and trading arms remain highly sensitive to market sentiment, bond issuance, and the IPO schedule.
Morgan Stanley reported net income of $4.4 billion, or $2.68 per diluted share, for the quarter ending Dec. 31, up from $3.7 billion, or $2.22, the previous year. Net revenue climbed to $17.9 billion. The bank’s return on tangible common equity — which excludes goodwill and other intangibles — hit 21.8%. (Morgan Stanley)
CEO Ted Pick highlighted that “investment banking activity accelerated and global markets remained strong,” noting total client assets hit $9.3 trillion across wealth and investment management. (Morgan Stanley)
Investment banking net revenue jumped 47%, hitting $2.41 billion. Advisory fees increased 45% to $1.13 billion, while debt underwriting — the business of arranging bond sales for clients — nearly doubled, soaring 93% to $785 million. https://www.bloomberg.com/news/articles/2026-01-15/morgan-stanley-crushes-investment-banking-estimates-on-debt-haul (Reuters)
Equities net revenue climbed 10% to $3.67 billion, driven by higher client activity and prime brokerage financing, which includes lending and services to hedge funds. Fixed income revenue dropped 9% to $1.76 billion, hit by weaker performance in commodities and foreign exchange that offset gains in other areas, the bank reported. (Morgan Stanley)
Wealth management net revenue climbed 13% to $8.43 billion. Morgan Stanley reported the unit attracted $122.3 billion in net new assets this quarter, with fee-based flows totaling $45.6 billion. (Morgan Stanley)
Investment management revenue climbed 5% to $1.72 billion, with assets under management and supervision hitting $1.90 trillion. Long-term net flows came in at $1.7 billion for the quarter. (Morgan Stanley)
Competitors are reporting comparable boosts from increased deal flow and market activity, with Morgan Stanley’s earnings reflecting a wider effort across Wall Street to convert busier markets into more reliable fee income. (Reuters)
Some weaker areas showed up. The company reported $87 million in charge-offs, mostly from one commercial real estate loan. Fixed income revenue also fell, highlighting how quickly trading can shift when volatility eases, issuance wanes, or risk appetite returns. (Morgan Stanley)
