Morgan Stanley (MS) has increased bonuses for its senior bankers in Asia by as much as 40%. This boost comes after the bank witnessed a surge in investment banking revenue from the region, rising by nearly 50% in 2024.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts and uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
On average, senior bankers in Asia will see bonus increases in the high teens. However, top performers in key markets like India and Australia are expected to receive even higher increases, ranging from 30% to 40%. In comparison, JPMorgan Chase & Co. (JPM) is offering more modest bonus hikes, with increases for senior bankers in the region limited to single digits, capping at 10%.
The news follows Morgan Stanley’s strong fourth-quarter earnings, which saw a 161% year-over-year increase, reaching $2.22 per diluted share. The bank’s Q4 revenues rose 25.8% year-over-year to $16.2 billion, exceeding the Street’s forecast of $15.03 billion. Additionally, Morgan Stanley reported record FY24 revenues of $61.8 billion, with equity trading revenue rising 22%, fueled by increased activity in Asia and the Americas.
Morgan Stanley’s Shows Strong Regional Performance
In 2024, Morgan Stanley solidified its leadership in Asia by ranking first in arranging the region’s equity sales. Notably, key transactions included the $3.6 billion sale of JD.com (JD) shares, along with a $3.3 billion deal for Hyundai Motor India and Tokyo Metro’s US$2.4 billion stock offering.
Furthermore, the bank secured the second spot in advising mergers and acquisitions across Asia-Pacific, including Japan, trailing Goldman Sachs Group (GS) by a narrow margin.
These achievements highlight Morgan Stanley’s strong presence in the region and its focus on rewarding senior bankers for their hard work.
Is MS Stock a Good Buy?
Analysts remain cautiously optimistic about MS stock, with a Moderate Buy consensus rating based on five Buys and eight Holds. Over the past year, MS has increased by more than 66%, and the average MS price target of $141 implies an upside potential of 2.27% from current levels.
