The Top Player in Investment Banking Industry- Morgan Stanley - PowerPoint PPT Presentation

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The Top Player in Investment Banking Industry- Morgan Stanley

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The global investment banking industry has staged an impressive rebound since the pandemic-driven slowdown, with total revenues surging to an estimated $89.8 billion in 2021 - a robust 26% year-over-year increase per Dealogic Analytics data. This resurgence was propelled by a flurry of activity across capital markets and merger advisory businesses. – PowerPoint PPT presentation

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Date added: 23 April 2024
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Title: The Top Player in Investment Banking Industry- Morgan Stanley


1
  • The Top Player in Investment Banking Industry-
    Morgan Stanley
  • The global investment banking industry has staged
    an impressive rebound since the pandemic-driven
    slowdown, with total revenues surging to an
    estimated 89.8 billion in 2021 - a robust 26
    year-over-year increase per Dealogic Analytics
    data. This resurgence was propelled by a flurry
    of activity across capital markets and merger
    advisory businesses.
  • Top Player Spotlight Morgan Stanley
  • Morgan Stanley has solidified its position as a
    preeminent force in the global investment banking
    landscape. The firm's prowess is exemplified by
    its impressive 2021 investment banking revenues
    of 9.8 billion.
  • Morgan Stanley reigns supreme as the No.1 Global
    Equity Underwriter, handling equity and
    equity-linked transactions worth a staggering
    8.3 billion and commanding an enviable 7.6
    market share.
  • In the high-stakes mergers and acquisitions
    advisory arena, Morgan Stanley stands tall as the
  • No.3 ranked player globally, advising on a
    remarkable 545 transactions valued at a colossal
  • 1.3 trillion in aggregate. With over 60,000
    employees spanning 42 countries worldwide, the
    firm boasts a truly global footprint and
    operating scale.
  • Notably, Morgan Stanley's Institutional
    Securities business, which encompasses investment
    banking, sales trading, and research, accounts
    for approximately 50 of the company's total
    revenues. This core segment has been a consistent
    growth engine and earnings juggernaut, propelling
    the firm's ascent as an industry heavyweight and
    market leader across multiple product verticals.
  • Morgan Stanley solidified its position as the
    dominant Wall Street equities franchise while
    rapidly gaining ground in merger advisory to
    complement its traditional fixed income
    powerhouse footprint. The bank's pivot to more
    stable, fee-based businesses continues paying
    dividends.
  • Learn more- The Industry Analysis of Investment
    Banking Sector
  • SWOT Analysis of Morgan Stanley
  • Strengths

2
  • Laser focus on driving durable, higher ROE
    businesses post-crisis
  • Weaknesses
  • Relatively more insulated domestic footprint vs.
    universal banking rivals
  • Smaller retail banking/consumer lending base to
    drive IB deal flow
  • Legacy compensation costs and complexity in
    overhauling front-to-back infrastructure
  • Overreliance on capital markets activity vs.
    annuity advisory/lending fees
  • Opportunities
  • Disruption of new areas like SPACs, direct
    indexing, crypto/digital assets
  • Cross-selling services to wealth management
    client base (4.9T AUM)
  • Geographic expansion into rapidly privatizing
    emerging markets
  • Targeted MA to bolster select product/coverage
    gaps
  • Threats
  • Rise of fintechs, trading venues
    disintermediating traditional services
  • Aggressive competitive hiring from Wall Street
    rivals, boutique firms
  • Impact of economic slowdown on lucrative
    dealmaking activity
  • Regulatory reforms, increasing sociopolitical
    scrutiny in key markets

3
Conclusion Morgan Stanley has deftly cemented its
position among the elite tier of global
investment banks, powered by its preeminence
across institutional equities and securities
franchises. The astute pivot towards durable,
less capital-intensive businesses post-financial
crisis has paid rich dividends as reflected in
superior profitability metrics. While smaller in
consumer banking compared to universal bank
rivals, Morgan Stanley's formidable strengths
across high revenue compounding arenas like
wealth management, institutional prime services,
and skilled MA advisory more than offset this
gap. Its deep client relationships and unmatched
distribution capabilities effectively
counterbalance the intensifying competitive
threats.
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