Jan 8 (Reuters) - Wall Street giant Morgan Stanley ( MS )

promoted 173 of its employees to managing director roles

this year, marking a 12% increase from 2024, a source close to

the matter told Reuters on Wednesday.

Bank of America ( BAC ) also promoted more employees to

managing director roles in December, as dealmakers at the

biggest U.S. banks prepare for a resurgence in mergers and

acquisitions as well as initial public offerings.

The banking sector is hopeful of a friendlier regulatory

environment under the incoming Trump administration and expects

lower interest rates to stimulate dealmaking.

Morgan Stanley ( MS ) promoted 155 employees to the rank of

managing director last year, down from the 184 promotions

carried out by the firm in 2023.

The company beat estimates for third-quarter profit in

October, driven by strength in its investment banking sector.

The bank is set to report its fourth-quarter results next week.

Shares of Morgan Stanley ( MS ) gained 35% in 2024, outperforming

broader U.S. equity markets.