(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.