(Reuters) – Morgan Stanley’s profit increased in the fourth quarter, fueled by a wave of dealmaking for the investment bank.
Its earnings grew to $3.7 billion, or $2.22 per share, it said on Thursday, compared with $1.5 billion, or 85 cents per share, a year earlier.
Morgan Stanley’s investment banking revenue rose 25% to $1.64 billion, echoing results at rivals Goldman Sachs and JPMorgan, which also reported stronger profit on Wednesday.
Wall Street banks benefited from a surge in mergers and acquisitions in the fourth quarter that boosted investment banking fees.
Dealmaking was also propelled by a strong U.S. economy, interest-rate cuts and expectations of lighter regulation under incoming U.S. President Donald Trump.
Investment banks also cashed in on rallying equities, which encouraged initial public offerings and follow-on stock sales, while lower borrowing costs led companies to issue bonds.
(Reporting by Niket Nishant in Bengaluru and Tatiana Bautzer in New York, Editing by Lananh Nguyen and Arun Koyyur)
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