Morgan Stanley (MS) ended the big bank’s third-quarter earnings season better than expected, with trading fees rising 56% to $1.4 billion. This earnings cycle has seen a pick-up in deal activity for top investment banks, particularly Morgan Stanley’s debt underwriting and M&A advisory divisions.
“The deal pipeline announced on last quarter’s earnings call is a great sign for all sectors. But for banks in particular, there is a lot of potential for deals as 2023 is expected to be short on deals. The demand is there,’” Dan Gerlich, PwC U.S. banking and capital markets trading leader, told Yahoo Finance.
“And as we look ahead to 2024, many banks are working on initiatives that focus on growth across all areas, especially organic growth through transactions.”
Gerlich details his outlook on M&A activity, what it means for large and regional banks, and how their priorities differ.
“Some of the megabanks are looking at a variety of initiatives, including product offerings, technology, new initiatives in fintech, assets and assets, other businesses such as broker-dealers, etc. , that in a more traditional banking environment, growth could be obtained by doing a more traditional merger, not only with higher leverage and scale, but also with new products and Services will also be provided.
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This post was written by Luke Carberry Mogan.
