Morgan Stanley's revenue beat fourth-quarter expectations today, helped by a rebound in dealmaking activity.
Several high-profile initial public offerings and merger announcements toward the end of last year sparked optimism about a nascent recovery in dealmaking in 2024.
"We begin 2024 with a clear and consistent business strategy and a unified leadership team," CEO Ted Pick said in a statement.
"We are focused on achieving our long-term financial goals and continuing to deliver for shareholders," he added.
Morgan Stanley is among the banking giants that are paying special fees to replenish a government deposit insurance fund that was drained by almost $16 billion after the collapse of two regional lenders last year.
It took a combined $535m in charges, which included $286m in special assessment fee to the regulator and $249m in legal charges.
Morgan Stanley's investment banking revenue rose 5% in the fourth quarter from a year ago, outperforming the broader industry.
Net revenue came in at $12.9 billion compared with analysts' expectations of $12.75 billion, according to LSEG data.
Its net income fell to $1.5 billion, or 85 cents per diluted share, in the three months ended December 31, compared with $2.2 billion, or $1.26 per diluted share, a year ago.
Morgan Stanley's former CEO James Gorman, who became executive chairman at the start of the year, had turned the bank into a wealth management powerhouse that was less dependent on volatile revenue from trading and investment banking.
He set an ambitious target of reaching $10 trillion in assets under management.
The unit has been central to Morgan Stanley's growth, but analysts have now begun to flag worries about a slowdown in new client assets, clouding the outlook for the business.
Net revenue in wealth management were flat at $6.65 billion compared to last year.
Morgan Stanley's fixed income and equity net revenue were also flat in the fourth quarter.
For the full year, net revenue came in at $54.1 billion compared with $53.7 billion a year ago. Net income fell to $5.18 per diluted share versus $6.15 per diluted share, a year ago.
The results compare with fellow Wall Street giants that reported lower profits on Friday, clouded by special charges and job cuts.
Rival Goldman Sachs' profit jumped 51% in the fourth quarter as its equity traders capitalised on a nascent recovery in markets.
Earlier this month, Morgan Stanley agreed to pay $249.4m to end years-long criminal and civil investigations into its handling of large stock trades for customers.
